The Real Reason Some Nigerian States Look Richer Than Others

Nigeria is a federation of 36 states plus the Federal Capital Territory. Each state has an elected governor, a legislature, and receives statutory allocations from the federal government. On paper, this system is meant to ensure that every state can provide essential services and develop over time.

Yet, when you travel across the country, the contrast is stark. Some states, like Lagos, Rivers, or Ogun, boast modern infrastructure, bustling economies, and high-quality public services. Others, often older or less resourced states, seem trapped in perpetual poverty and underdevelopment. Why does this happen?
1. It’s Not Just About Allocations
While federal allocations form the backbone of state revenue, they are not the only determinant of wealth or development. States generate their own revenue, known as Internally Generated Revenue (IGR)—from taxes, tolls, and commercial activities.

For example:
Lagos State earns billions from property taxes, market levies, and corporate registration fees.
States without vibrant commercial activity rely almost entirely on federal allocations, limiting their ability to fund meaningful projects.
Simply put, allocations create opportunity, but the ability to generate and manage local resources determines how well a state thrives.
2. Governance Matters
A state’s leadership is a key factor. Governors who prioritize efficient planning, transparent budgeting, and corruption control can stretch allocations into transformative projects—roads, hospitals, power plants, schools, and tech hubs.
Conversely, mismanagement or diversion of funds can leave states starved of visible development, even if their federal allocations are substantial. Good governance multiplies resources; poor governance squanders them.
3. Population and Demand
Development is also a matter of per capita distribution. States with large populations need more infrastructure and services. If allocations are distributed equally per state rather than per person, residents of populous states may feel they receive less “value for money.”
4. Historical Legacy and Political Factors
Many older states or regions face structural challenges—decades of neglect, conflicts, or weak infrastructure networks. Additionally, political alignment can affect development: federal projects sometimes favor states aligned with the ruling party, leading to noticeable disparities.
5. The Misconception
Many Nigerians assume that federal allocations alone determine a state’s development level. The reality is more complex:
A state with modest allocations but strong governance and local revenue can flourish.
A state with high allocations but weak leadership and poor planning can lag behind.
In essence, allocations create the stage, but governance writes the script.

CONCLUSION.
Yes, all states have governors and allocations, but development depends on leadership, resource management, and local economic activity. Wealthy-looking states did not get there by luck, they invested wisely, planned strategically, and leveraged both federal and local resources.
For Nigeria to reduce the gap between its richest and poorest states, the conversation must go beyond allocations. It must focus on accountability, effective governance, and empowerment of local economies.
As citizens, understanding this helps us hold leaders accountable, demand better governance, and appreciate that development is a choice, not just a gift from Abuja.