Good governance is the cornerstone of sustainable economic growth, particularly at the state level in Nigeria, where subnational governments wield significant influence over development outcomes. Despite Nigeria’s vast natural and human resources, many states struggle with economic stagnation, largely due to poor governance, inefficiency, and corruption. For Nigeria’s states to achieve meaningful progress, good governance must be prioritised as a catalyst for economic transformation, job creation, and improved quality of life for citizens.
A key element of good governance is transparency in public financial management. Many Nigerian states depend heavily on federal allocations rather than internally generated revenue (IGR), leading to fiscal irresponsibility and a lack of accountability in expenditure. When government finances are mismanaged, vital sectors such as education, healthcare, and infrastructure suffer, ultimately stunting economic growth. States that have implemented reforms in revenue collection and expenditure tracking, such as Lagos, have demonstrated that transparent financial management can significantly boost economic performance.
Another crucial aspect of governance is the implementation of policies that foster a business-friendly environment. Many Nigerian states are plagued by bureaucratic red tape, inconsistent regulations, and poor infrastructure, which discourage investment and entrepreneurship. To attract both local and foreign investment, state governments must streamline regulatory processes, improve security, and invest in critical infrastructure such as roads, electricity, and digital connectivity. States that proactively create enabling environments for businesses will experience economic diversification and resilience against external shocks.
Accountability and the rule of law are equally vital in driving economic growth. The absence of strong legal frameworks and the prevalence of corruption deter investors and weaken economic progress. Governments at the state level must enforce contracts, protect property rights, and ensure justice systems function efficiently. Anti-corruption measures should be institutionalised to build investor confidence and ensure that public resources are used for their intended purposes.
Human capital development is another area where good governance plays a transformative role. The quality of education and vocational training at the state level directly impacts workforce productivity and economic output. States that prioritise investments in quality education, technical training, and healthcare are more likely to produce a competitive workforce, attract investments, and foster innovation-driven growth.
Ultimately, the pathway to economic prosperity at the state level in Nigeria lies in governance that is transparent, accountable, business-friendly, and people-centric. While federal policies provide overarching direction, it is at the state level that economic policies are implemented and their impact felt directly by citizens. By embracing good governance principles, Nigerian states can unlock their economic potential, reduce dependency on federal allocations, and chart a path toward inclusive and sustainable growth.
