State Debt Skyrockets: Lagos & Edo Citizens Now Carry Over ₦100,000 Each
- About 12 Nigerian states now rank among those with the highest debt per person as Nigeria’s debt profile skyrockets
- Data by BudgeIT, the social accountability platform, shows that two Nigerian states have about ₦100,000 debt per capita
- This development comes as Nigeria’s total debt profile has risen to ₦152.4 trillion, driven by increased external borrowing
Nigeria’s state debts are rising sharply, and citizens are bearing the burden. A new report by BudgIT reveals that residents of Lagos and Edo now carry over ₦100,000 each in state debt, more than twice the national average.
Overall, twelve states exceed the average debt per person, underscoring growing fiscal pressures despite calls for tighter borrowing controls.
This signals that the liabilities carried by the citizenry are steadily increasing.
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In 2024, twelve states exceeded the national average debt per person, meaning their citizens shoulder significantly greater debt burdens than the norm.
Lagos & Edo: staggering numbers
Two states stand out: Lagos State and Edo State each exceed ₦100,000 debt per person, more than twice the national average.
That means an individual in those states is effectively carrying government debt well into six-figures.
Despite pressure on state finances, borrowing has continued. Subnational debt rose about 6.8% from N9.89 trillion in 2023 to N10.57 trillion in 2024. Many states are using more debt just to stay afloat.
Why the surge matters for everyday citizens
When debt per capita is high, the consequences can ripple out: less fiscal room for essentials like health or education, higher repayment costs, and greater risk of service deterioration.
Citizens therefore feel the impact even if debt is on the books of the government.
Analysts have blamed the rising debt on Nigeria's surging debt profile, which has risen to N152.4 trillion, rising by over N3 trillion in one month.
Sustainability under stress
A prolonged rise in per-capita debt implies states will spend more future revenue servicing debt instead of investing in growth. That raises questions about long-term viability of current borrowing practices.
The scale of these debts underscores the need for stronger governance: Are loans being tied to productive projects? Is there accountability for how funds are used? The BudgIT report urges greater scrutiny.
Differences in internally-generated revenue (IGR), borrowing practices, foreign currency debt exposure and budget discipline mean per-capita debt varies widely.
For example, some states have large dollar-denominated debt, increasing exposure to exchange-rate risk.
What you should watch for as a resident
If you live in a high-debt state, keep an eye on:
- Reports on state borrowing and debt servicing schedules.
- Whether capital projects tied to loans are visible and delivered.
State budgets and the share of revenue devoted to debt service vs. public services.
Takeaway: borrowing isn’t bad, but it must be managed
Borrowing can support development, but only when aligned with revenue capacity and disciplined oversight.
Experts say the fact that in Lagos and Edo debt per person now tops six figures should be a wake-up call: all borrowing must be matched by clear returns and sustainable repayment plans.
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"The problem now is debt-servicing, which will be borne by unborn generations," Osas Igho, a financial analyst, told Legit.ng on a call.
"There is nothing wrong with borrowing, but Nigeria needs fiscal discipline because most of borrowing are either looted or spent on assets that do not generate revenue, he said.
Nigeria’s debt service gulps N8.93 trillion in 9 months
Legit.ng earlier reported that the Nigerian government spent N8.93 trillion on debt servicing, an equivalent of $6.2 billion, in nine months.
The record represents 61% of the N14.55 trillion revenue generated in the review period.
According to the report, the figure exceeds quarterly and cumulative targets, showing the growing strain that debt service places on government finances.
Source: Legit.ng
