ABUJA, Nigeria — The combined debt stock of Nigeria’s 36 states and the Federal Capital Territory (FCT) rose to N4.36 trillion in 2025, with Lagos State accounting for N1.04 trillion of the total, according to data released by the Debt Management Office (DMO) on April 20, 2026.
Okay News reports that total subnational debt increased by 9.89 percent year-on-year from N3.97 trillion in 2024, an absolute rise of N392.41 billion, as state governments ramped up borrowing to fund infrastructure projects and manage fiscal shortfalls.
The data revealed a significant concentration of debt among a small group of states. The top 10 most indebted states accounted for N2.96 trillion, representing 67.98 percent of the total subnational debt stock.
Lagos, Rivers, Delta, Ogun, and the Federal Capital Territory together owed approximately N2.26 trillion, more than half of the entire N4.36 trillion debt stock. Lagos alone made up 27.97 percent of the total.
Benue State was the only state in the top 10 to record a reduction in its debt burden. The state’s obligations fell by 12.52 percent to N107.23 billion from N122.58 billion in 2024, suggesting active debt repayment or reduced fresh borrowing.
Rivers State and Delta State were among the other highly indebted states, though the DMO data highlighted Lagos as the clear outlier in absolute borrowing levels.
The rising subnational debt profile reflects continued fiscal pressure on state governments amid a challenging macroeconomic environment.
