DMO Data Shows 10 States Account For 67% Of Subnational Debt
Subnational Debt Climbs to ₦4 Trillion
NIGERIA’S 36 states and the Federal Capital Territory (FCT) recorded a combined debt stock of ₦4.002 trillion as of 30 September 2025, according to fresh figures released by the Debt Management Office (DMO).
The subnational debt represents 2.61 per cent of Nigeria’s total public debt, which stood at ₦153.29 trillion during the same period. While the Federal Government continues to shoulder the bulk of the national debt burden, the latest data highlight mounting fiscal pressures at the state level.
Lagos Leads the Pack
The debt profile is heavily concentrated among a handful of states. Ten states account for 67 per cent of the total subnational debt, amounting to ₦2.68 trillion.
Lagos State emerged as the most indebted, with a debt stock of ₦1.045 trillion—representing about 26 per cent of the combined debt owed by states and the FCT.
Rivers State followed distantly with ₦381.205 billion, while Delta State recorded ₦247.171 billion. Enugu State ranked fourth at ₦194.715 billion.
Other states in the top 10 include Ogun State (₦168.093 billion), Bauchi State (₦158.197 billion), Niger State (₦143.469 billion), Cross River State (₦141.941 billion), Benue State (₦107.254 billion) and Akwa Ibom State (₦95.506 billion).
Fiscal Pressures and Risks
Analysts attribute rising subnational borrowing to infrastructure financing gaps, declining oil revenues and budget shortfalls. While loans often fund capital projects, experts warn that weak debt management could constrain long-term growth.
Growing debt servicing costs, compounded by naira depreciation and elevated interest rates, may crowd out critical spending on health, education and social services.
The DMO has repeatedly emphasised prudent borrowing and fiscal discipline. Observers say reforms aimed at boosting internally generated revenue (IGR) and improving federal transfers will be key to easing pressures.
However, the concentration of debt in economically significant and oil-producing states also raises broader questions about fiscal federalism, revenue autonomy and the sustainability of subnational borrowing patterns.
