The Digest:
Nigeria's 36 states and the Federal Capital Territory (FCT) incurred a combined debt of N4.002 trillion as of September 30, 2025, according to the Debt Management Office (DMO). The subnational debt represents 2.61% of Nigeria's total public debt, which stood at N153.29 trillion. Ten states account for 67% of the total (N2.68 trillion), with Lagos State topping the list at N1.045 trillion (26% of total). Rivers State follows with N381.205 billion, Delta State N247.171 billion, Enugu State N194.715 billion, Ogun State N168.093 billion, Bauchi State N158.197 billion, Niger State N143.469 billion, Cross River State N141.941 billion, Benue State N107.254 billion, and Akwa Ibom State N95.506 billion. The figures highlight growing fiscal pressures at subnational levels, with states financing deficits from infrastructure gaps and declining oil revenues. The DMO emphasised prudent management as rising debt servicing costs risk crowding out spending on health and education.
Key Points:
- The N4trn state debt burden increases fiscal pressure and servicing costs.
- Lagos's disproportionate 26% share reflects its economic size and infrastructure needs.
- Citizens face reduced public services as debt servicing consumes revenue.
- This signals urgent need for improved IGR and fiscal discipline.
- The timing, with national debt at N153trn, amplifies concerns.
Sources: Leadership, DMO
