Reported by Simon Daniel Yusuph l Journalist at Weng Global
The Democratic Leadership Alliance (DLA) has expressed concern over Osun State’s 32nd position in the 2026 State of States fiscal performance ranking released by BudgIT, describing the state’s performance as worrying and calling on Governor Ademola Adeleke’s administration to strengthen revenue generation, fiscal discipline and public expenditure management.
The opposition party criticised the Osun State Government following the release of BudgIT’s 11th State of States Report, which assessed the fiscal performance of 35 Nigerian states using financial data for 2025.
In a statement issued by its Osun State chairman, Dr Tosin Odeyemi, the party argued that the state’s position reflected weaknesses in the government’s economic management and raised questions about its ability to translate public revenue into sustainable economic development.
The DLA maintained that Osun, despite its economic potential and increased federal allocations to state governments, should be performing better in revenue mobilisation, financial management and investment in productive sectors.
The party’s reaction has introduced a fresh political dimension to the debate over the management of public finances in Osun State, particularly as Nigerians continue to demand greater accountability from state governments over the use of public resources.
However, the ranking also presents an opportunity to examine the financial indicators behind Osun’s position, including its revenue generation, expenditure commitments and debt-servicing obligations.
DLA Questions Adeleke’s Economic Management
Reacting to the report, Odeyemi described Osun’s 32nd position as a troubling indication of the state’s fiscal condition under the current administration.
He argued that the ranking supported the opposition’s longstanding criticism that the government had not developed a sufficiently effective economic strategy to strengthen the state’s financial independence.
According to the party chairman, Osun’s performance demonstrated the need for a more deliberate approach to economic planning, particularly in expanding internally generated revenue and reducing dependence on federal allocations.
Odeyemi also compared Osun’s position with the performance of other states, including Kebbi, Jigawa and Katsina, which performed better in the assessment.
The DLA questioned why Osun, despite its economic and agricultural potential, remained among the lower-ranked states.
The party further argued that the state government should prioritise economic development, improve revenue collection, address financial leakages and direct more resources towards productive sectors.
It also urged residents to demand greater transparency regarding the management of state resources.
The opposition maintained that the findings should serve as a warning to the administration and encourage a reassessment of its economic priorities.
However, the party’s criticism represents a political assessment of the ranking and should be distinguished from BudgIT’s technical findings, which are based on specific fiscal indicators.
What BudgIT’s 2026 Fiscal Ranking Reveals
BudgIT’s 2026 State of States Report examined the financial performance of Nigerian states using four major assessment areas.
The report, themed From Allocation to Impact: Rethinking State Spending Priorities, evaluated how effectively state governments generated revenue, managed expenditure, maintained debt sustainability and invested in critical sectors.
The four assessment pillars were:
- Revenue performance, accounting for 40 per cent.
- Fiscal viability, accounting for 30 per cent.
- Debt sustainability, accounting for 15 per cent.
- Spending on selected critical sectors, accounting for 15 per cent.
The selected development sectors included agriculture, healthcare, education, and water, sanitation and hygiene.
The assessment covered 35 states, with Rivers State excluded because the required audited financial statements and budget implementation reports for the period under review were unavailable.
Lagos emerged as the highest-ranked state, followed by Enugu and Bayelsa. Delta and Kebbi completed the top five.
At the other end of the ranking, Plateau occupied 34th position, Kogi 33rd, Osun 32nd and Ogun 31st, while Cross River ranked last among the states assessed.
The findings suggest that fiscal performance is not determined solely by the amount of money a state receives or generates.
Instead, the assessment considers how effectively governments manage available resources, meet financial obligations and invest in sectors that directly affect citizens.
For Osun, the 32nd position therefore raises questions about the state’s overall fiscal sustainability and the relationship between government revenue and development expenditure.
Debt Servicing Places Pressure on Osun’s Finances
One of the important financial indicators highlighted in the 2026 assessment concerns Osun’s debt-servicing expenditure.
According to details of the report published by Newswatch Nigeria, Osun spent approximately N100.17 billion on debt servicing during the 2025 financial year.
The expenditure represented 28.60 per cent of the state’s total revenue.
This means that a substantial portion of the revenue available to the state was committed to meeting debt-related obligations.
Debt servicing generally includes payments towards interest and other obligations associated with government borrowing.
Although borrowing can provide governments with resources to finance infrastructure and development projects, excessive debt obligations can reduce the funds available for other public responsibilities.
When a significant percentage of revenue is committed to debt servicing, governments may have less financial flexibility to fund education, healthcare, roads, water supply, agriculture and other essential services.
For Osun, the reported N100.17 billion debt-servicing expenditure represents an important area requiring public scrutiny.
The figure also demonstrates why debt sustainability remains a major component of BudgIT’s assessment.
However, debt servicing should not be examined in isolation. A complete assessment would also consider the state’s total debt stock, the terms of its borrowing, the purposes for which the loans were obtained and the economic benefits generated by projects financed through borrowing.
The quality of government expenditure is equally important in determining whether public borrowing contributes to long-term development.
Adeleke’s Aide Offers Explanation for Osun’s Ranking
While the DLA criticised the state government’s financial management, an aide to Governor Adeleke, Olalekan Badmus, offered a different explanation for Osun’s performance.
In a response published on Facebook, Badmus acknowledged the state’s 32nd position but argued that the circumstances surrounding the assessment and financial pressures facing the government should be considered.
He attributed part of the state’s financial difficulties to the continued withholding of local government allocations.
According to him, the situation had forced the state government to use state resources to meet financial obligations relating to local government workers.
He argued that funds that could otherwise have supported state-level programmes were being used to address responsibilities associated with local government administration.
Badmus maintained that this situation contributed significantly to Osun’s performance in the fiscal assessment.
He also challenged the DLA’s criticism of the Adeleke administration, pointing to Osun’s previous performance in BudgIT’s fiscal rankings.
According to the governor’s aide, Osun occupied 12th position in the 2024 fiscal ranking, which he said demonstrated improvement compared with previous years.
His response suggests that the administration believes the state’s latest performance should be considered alongside the financial circumstances affecting its operations.
However, the explanation concerning local government allocations represents the position of the governor’s aide. The extent to which the issue affected Osun’s 2025 fiscal indicators would require examination of the relevant financial records and the methodology used by BudgIT.
The competing positions from the DLA and the governor’s aide highlight the need for a detailed public discussion based on verifiable financial information rather than political arguments alone.
Nigeria’s States Face Pressure to Improve Revenue Management
Osun’s ranking comes at a time when state governments across Nigeria are receiving increased financial allocations through the Federation Account Allocation Committee (FAAC).
The increase in available public revenue has intensified expectations that state governments should demonstrate measurable improvements in infrastructure, healthcare, education and other essential services.
At the presentation of BudgIT’s 2026 State of States Report in Abuja, the organisation and other stakeholders highlighted the importance of ensuring that increased government revenue translates into better living conditions.
According to The Guardian’s report on the presentation, the World Bank’s Senior Country Economist, Gloria Joseph-Raji, disclosed that FAAC transfers accounted for an average of 73 per cent of aggregate state revenues between 2021 and 2025, excluding Lagos.
She also noted that federal transfers accounted for more than 75 per cent of revenue in all but a handful of states in 2025.
The figures highlight the continued dependence of many Nigerian states on revenue distributed by the Federal Government.
For state governments, this dependence presents a long-term challenge because sustainable economic development requires stronger local revenue systems and productive economic activities.
States must therefore improve their capacity to generate revenue internally while ensuring that taxation and other revenue collection measures do not place unreasonable burdens on residents and businesses.
For Osun, expanding internally generated revenue could provide additional resources for development and reduce vulnerability to fluctuations in federal allocations.
However, revenue growth must be accompanied by responsible spending and effective public financial management.
Why Osun’s 32nd Position Matters
Osun’s position in the 2026 fiscal ranking is important because state financial performance directly affects the government’s capacity to provide essential public services.
When revenue is insufficient or expenditure commitments become difficult to manage, the consequences can affect infrastructure development, public-sector operations and social investment.
The reported debt-servicing burden also raises questions about how much of the state’s revenue remains available for new development projects.
For residents, the central concern is not simply where Osun appears on a national ranking table.
The more important issue is whether public funds are producing visible improvements in their daily lives.
This includes access to quality healthcare, functional schools, reliable water supply, improved roads, agricultural support and opportunities for employment.
A state may generate substantial revenue without achieving corresponding improvements in citizens’ welfare if expenditure is poorly managed or development priorities are not properly implemented.
Similarly, a state with limited revenue may struggle to meet its obligations even when its government adopts reasonable spending policies.
This is why BudgIT’s assessment considers several financial and development indicators rather than relying on a single measure.
The findings also place responsibility on the state legislature, civil society organisations, journalists and residents to scrutinise government budgets and expenditure reports.
Public accountability should involve examining how much money the government receives, how it is spent and what measurable outcomes are achieved.
The Need for Greater Transparency and Economic Reforms
The debate surrounding Osun’s fiscal ranking presents an opportunity for the state government to provide more detailed explanations of its financial position.
The administration could strengthen public confidence by making relevant financial information accessible and explaining the relationship between its revenue, expenditure, borrowing and development priorities.
Greater transparency would also help residents understand the circumstances behind the state’s ranking and assess the government’s response to the challenges identified.
Several areas deserve attention.
First, the state needs to strengthen its internally generated revenue through improved tax administration, better revenue collection systems and policies that encourage business development.
Second, expenditure management should prioritise projects with measurable economic and social benefits.
Third, the government needs to maintain a sustainable debt profile by ensuring that borrowing is properly evaluated and directed towards projects capable of generating long-term value.
Fourth, stronger monitoring of public projects would help establish whether budgetary allocations are producing the intended results.
Finally, the state should improve communication with residents regarding financial decisions and the progress of development programmes.
These measures would help shift public discussions from political accusations towards practical solutions.
What Happens Next?
The DLA has urged Governor Adeleke’s administration to reassess its economic priorities, improve revenue generation, address financial leakages and invest in productive sectors.
The governor’s aide, meanwhile, has defended the administration by pointing to the financial pressure associated with local government obligations and Osun’s previous ranking performance.
The disagreement places renewed attention on the state’s financial management and the need for a transparent examination of the factors responsible for its 32nd position.
The next important step will be for the Osun State Government to address the concerns raised by the assessment with verifiable financial information and a clear account of its economic priorities.
The state legislature and other accountability institutions also have important roles in ensuring that public resources are properly managed.
For residents, the expectation is that the findings will lead to stronger financial discipline, improved service delivery and more effective use of public revenue.
Ultimately, BudgIT’s ranking should not be treated merely as a political scorecard. It is an assessment that provides an opportunity to examine the relationship between government finances and citizens’ welfare.
Osun’s 32nd position may have triggered criticism from the opposition, but the more important test for the Adeleke administration will be its ability to demonstrate that public resources are being managed sustainably and translated into meaningful development.
Weng Global – stories beyond borders
Sources
- BudgIT – 2026 State of States Report.
- The Guardian Nigeria – Report on BudgIT’s 2026 fiscal performance ranking, November 4, 2026.
- Newswatch Nigeria – State-by-state analysis of BudgIT’s 2026 State of States fiscal performance ranking, November 2026.
- NaijaOnPoint – Report on the Democratic Leadership Alliance’s reaction to Osun’s 32nd position and the response from Governor Adeleke’s aide, November 5, 2026.
