Nigeria’s 36 states and the Federal Capital Territory recorded a combined debt stock of N4.36 trillion in 2025, a 9.89 per cent increase from N3.97 trillion in the previous year, according to data released by the Debt Management Office.
Lagos State alone accounted for N1.04 trillion of the total, representing 27.97 per cent of all subnational borrowing and making it the most indebted state by a wide margin.
The top 10 most indebted states owed N2.96 trillion, accounting for 67.98 per cent 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 owed by all 36 states and the FCT.
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Benue State was the only state among the top 10 to record a reduction in its debt burden, with obligations falling 12.52 per cent to N107.23 billion from N122.58 billion in 2024.
The rising debt profile reflects continued fiscal pressure on state governments, which have ramped up borrowing to fund infrastructure projects and manage fiscal shortfalls amid a challenging macroeconomic environment.
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The data also reveals a significant concentration of debt among a small group of states, highlighting growing fiscal disparities across the federation.
While Rivers and Delta remain among the highly indebted states, Lagos stands out as the clear outlier in absolute borrowing levels.
