Abuja, Nigeria – Eleven states and the Federal Capital Territory increased their domestic debt stock by a combined N373.06 billion between December 2024 and September 2025, according to analysis of Debt Management Office data.
Okay News reports that total domestic debt for the 36 states and the FCT rose from N3.97 trillion as of December 2024 to N4.00 trillion as of September 2025. The increase of N34.84 billion represents modest 0.88 percent growth at aggregate level. However, the 12 subnational entities accounted for 55.94 percent of total domestic debt at end of 2024 but now represent 64.77 percent of the N4.00 trillion total.
Lagos State remains Nigeria’s largest subnational domestic debtor, with its debt stock increasing from N900.19 billion to N1.05 trillion. Enugu recorded one of the sharpest expansions, with debt surging from N119.28 billion to N194.72 billion, an increase of 63.24 percent. Delta’s debt rose from N199.58 billion to N247.17 billion, while Rivers increased from N364.39 billion to N381.21 billion. Borno posted the highest percentage increase, with debt jumping from N27.91 billion to N47.23 billion, a 69.19 percent rise.
While these 12 entities expanded borrowing, 25 states moved in opposite direction by reducing their debt stock. Kogi recorded steepest percentage decline, with debt dropping from N41.59 billion to N14.31 billion. Ogun posted largest absolute reduction, falling from N211.86 billion to N168.09 billion. Edo reduced debt by N36.86 billion, Imo cut by N35.64 billion, and Plateau trimmed N27.00 billion.
These repayments substantially offset increases recorded by smaller group of states, explaining why total subnational domestic debt rose by only N34.84 billion overall. The divergence highlights contrasting fiscal strategies among states, with some increasing borrowing while others prioritise debt reduction to manage domestic debt burdens.
