The State of States 2026 marks a year of fiscal analysis of Nigeria’s 36 states, offering a unique perspective on subnational growth, decline, and middling performance. Over ten years, BudgIT has tracked how states mobilise resources, manage debt, and allocate revenues, providing clear evidence of successes, failures, and stagnation. This long-term view is especially critical at a time when increased federal allocations, fuel subsidy removal, and tax reforms have expanded fiscal space for states, but without corresponding improvements in service delivery. Despite more funds, poverty, inflation, and weak infrastructure still constrain productivity and economic growth, underscoring the urgency for states to rethink fiscal strategies.

The 2026 State of States will therefore shift the analytical conversation from “How much is allocated?” to “What is being prioritised, why, and with what likely impact?” This edition will interrogate the alignment between state needs, fiscal capacity, budgetary priorities and expenditure outcomes. It will identify spending patterns that offer opportunities for improvement and provide state-specific recommendations that governments can use during budget preparation, appropriation and implementation. However, most importantly, it will seek to provide an assessment of how well public services are able to meet the needs of citizens.