Eleven Nigerian states and the Federal Capital Territory (FCT) significantly expanded their combined domestic debt by N373.06 billion between December 31, 2024, and September 30, 2025, according to an analysis of Debt Management Office (DMO) data published by Nairametrics on February 24, 2026.
While the aggregate domestic debt of all 36 states and the FCT grew only marginally—from N3.97 trillion to N4.00 trillion, an increase of N34.84 billion or 0.88%—the borrowing was heavily concentrated among a small group of entities. These 12 subnational bodies (11 states plus FCT) saw their total domestic debt surge 16.81% from N2.22 trillion to N2.59 trillion, elevating their share of the national subnational debt from 55.94% to 64.77%.
Lagos State continued to lead as the largest subnational borrower, with its domestic debt rising N145.62 billion (16.18%) from N900.19 billion to N1.05 trillion. Enugu State recorded one of the most aggressive expansions, adding N75.43 billion—a 63.24% jump—from N119.28 billion to N194.72 billion.
Other notable increases included:
– Delta State: +N47.60 billion (23.85%), reaching N247.17 billion
– Cross River: +N23.81 billion, to N141.94 billion
– Rivers State: +N16.81 billion (4.61%), to N381.21 billion (based on June 2025 data per DMO)
– FCT: +N15.37 billion (24.19%), to N78.93 billion
– Bauchi: +N14.25 billion (9.90%), to N158.20 billion
– Borno: +N19.31 billion (69.19%), the highest percentage rise, to N47.23 billion
Smaller absolute increases were recorded by Taraba (+N8.35 billion), Kwara (+N3.48 billion), Niger (+N2.76 billion), and Jigawa (+N270.77 million).
In contrast, 25 states actively reduced their domestic debt over the same period, offsetting much of the borrowing by the high-debt group and explaining the minimal overall national increase.
Among the largest reductions:
– Ogun State: -N43.77 billion (20.66%), to N168.09 billion
– Imo State: -N35.64 billion (28.25%), to N90.51 billion
– Edo State: -N36.86 billion (32.62%), to N76.13 billion
– Plateau State: -N27.00 billion (28.70%), to N67.09 billion
– Akwa Ibom: -N26.69 billion (21.84%), to N95.51 billion
– Bayelsa: -N23.99 billion (29.01%), to N58.73 billion
– Kogi State posted the steepest percentage decline, cutting debt by 65.59% from N41.59 billion to N14.31 billion
Other states with notable reductions included Abia (-N17.58 billion), Benue (-N15.32 billion), Gombe (-N13.56 billion), Katsina (-N8.66 billion), and Sokoto (-N8.33 billion), alongside more moderate cuts in Adamawa, Kano, Yobe, Nasarawa, Ekiti, Anambra, Kaduna, Kebbi, Osun, Ondo, Zamfara, and Ebonyi.
The divergent trends highlight a growing concentration of subnational debt among a minority of states, raising questions about fiscal sustainability, borrowing capacity, and debt servicing burdens in those jurisdictions. Meanwhile, the broader restraint shown by the majority of states has helped contain the overall rise in subnational domestic obligations.
Analysts note that continued monitoring of debt dynamics will be essential, particularly as states balance infrastructure financing needs against revenue constraints and potential interest rate pressures in the domestic market. The DMO’s quarterly updates remain a critical tool for tracking these developments across Nigeria’s federating units.
