Subnational debt: 11 states, FCT borrow N373.06 billion in nine months

Eleven states and the Federal Capital Territory (FCT) increased their domestic debt stock by a combined N373.06 billion between December 2024 and September 2025, according to an analysis by Nairametrics.

Data from the Debt Management Office (DMO) show that total domestic debt for the 36 states and the FCT rose from N3.97 trillion as of December 31, 2024, to N4.00 trillion as of September 30, 2025.

The increase of N34.84 billion represents a modest 0.88% growth at the aggregate level.

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However, a closer look reveals that 11 states and the FCT accounted for a combined increase of N373.06 billion over the nine-month period. Their total domestic debt rose from N2.22 trillion in December 2024 to N2.59 trillion in September 2025, marking a 16.81% jump.

This has significantly shifted the debt concentration pattern.

These 12 subnational entities accounted for 55.94% of total domestic debt at the end of 2024 but now represent 64.77% of the N4.00 trillion total as of September 2025.

**What the data shows **

Lagos State remains Nigeria’s largest subnational domestic debtor. Its debt stock increased from N900.19 billion in December 2024 to N1.05 trillion in September 2025, reflecting an increase of N145.62 billion or 16.18%.

• Enugu recorded one of the sharpest expansions both in absolute and percentage terms. Its domestic debt surged from N119.28 billion to N194.72 billion, an increase of N75.43 billion or 63.24%.
• Delta’s domestic debt rose from N199.58 billion to N247.17 billion, adding N47.60 billion or 23.85% within nine months.
• Rivers State’s domestic debt increased from N364.39 billion to N381.21 billion, a N16.81 billion rise representing 4.61% growth.
• However, according to the DMO, Rivers’ September figure reflects its June 30, 2025, position.

Cross River expanded its domestic obligations by N23.81 billion, moving from N118.13 billion to N141.94 billion, while Bauchi added N14.25 billion, taking its total from N143.95 billion to N158.20 billion, a 9.90% increase.

Borno posted the highest percentage increase in the group. Its debt jumped from N27.91 billion to N47.23 billion, an increase of N19.31 billion or 69.19%.

The FCT’s domestic debt rose from N63.56 billion to N78.93 billion, reflecting a N15.37 billion increase or 24.19%.

• Taraba’s debt climbed from N81.39 billion to N89.74 billion, adding N8.35 billion or 10.26%. Kwara’s debt increased from N59.08 billion to N62.56 billion, up by N3.48 billion or 5.89%. Niger recorded a modest rise from N140.74 billion to N143.50 billion, an increase of N2.76 billion or 1.96%.

Jigawa posted the smallest absolute increase, rising from N1.33 billion to N1.60 billion, an increase of N270.77 million or 20.37%.

**25 states cut domestic debt despite overall uptick **

While 11 states and the FCT expanded their domestic debt by N373.06 billion within nine months, a much larger group of 25 states moved in the opposite direction, reducing their debt stock between December 2024 and September 2025.

• This divergence explains why total subnational domestic debt rose by just N34.84 billion, or 0.88%, from N3.97 trillion as of December 2024 to N4.00 trillion as of September 2025.
• The persistent borrowing by a handful of states was partly offset by substantial repayments and debt reductions elsewhere.
• Kogi recorded the steepest percentage decline. Its domestic debt dropped from N41.59 billion in December 2024 to N14.31 billion in September 2025, a reduction of N27.28 billion or 65.59%.
• Ogun posted the largest absolute reduction. Its debt fell from N211.86 billion to N168.09 billion, a decrease of N43.77 billion or 20.66%.
• Edo reduced its domestic debt by N36.86 billion, bringing its stock down from N113.00 billion to N76.13 billion, a 32.62% contraction.

Imo also cut significantly, lowering its debt from N126.14 billion to N90.51 billion, a N35.64 billion reduction or 28.25%.

Plateau trimmed N27.00 billion from its obligations, reducing its debt from N94.09 billion to N67.09 billion, representing a 28.70% decline.

Akwa Ibom reduced its stock by N26.69 billion, moving from N122.19 billion to N95.51 billion, a 21.84% drop.

Bayelsa lowered its domestic debt from N82.72 billion to N58.73 billion, a reduction of N23.99 billion or 29.01%. Abia cut N17.58 billion, bringing its debt down from N66.08 billion to N48.50 billion, a 26.61% decline.

Benue reduced its stock by N15.32 billion, while Gombe cut N13.56 billion. Sokoto lowered its debt by N8.33 billion, and Katsina reduced its obligations by N8.66 billion, representing a 33.72% decline.

Other states posted more moderate reductions.

• Adamawa trimmed N6.45 billion, Kano reduced N5.37 billion, Yobe cut N5.68 billion, Nasarawa lowered N4.18 billion, and Ekiti reduced N4.88 billion.
• Anambra decreased its debt by N2.01 billion, Kaduna by N2.63 billion, Kebbi by N377.49 million, Osun by N2.94 billion, Ondo by N3.34 billion, Zamfara by N2.57 billion, and Ebonyi by N3.48 billion.
• Overall, 25 states recorded negative growth in domestic debt between December 2024 and September 2025.

Their repayments and reductions substantially offset the sharp increases recorded by a smaller group of states and the FCT.

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