Lagos Leads As States' Borrowing Rises Across States
- New data released by DMO has revealed states with the highest domestic and external debt exposure
- Lagos and Rivers remain at the top as Nigeria’s combined public debt continues to rise
- The growing debt burden continues to increase repayment obligations amid limited fiscal revenue
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Lagos and Rivers States have emerged among the top indebted subnational governments in Nigeria as new data from the Debt Management Office (DMO) on Friday, April 17, shows a sharp rise in both domestic and external debt between 2024 and 2025.
Analysis showed that states debt profile revealed that total external debt rose to $51.81 billion in 2025, up from $45.78 billion in 2024.
While domestic debt across the 36 states and the Federal Capital Territory (FCT) increased to N4.36 trillion, compared to N3.97 trillion in 2024.
Source: Facebook
The rising debt continues to raise concerns over fiscal sustainability, as governments at both the federal and state levels remain heavily reliant on borrowing to fund budget deficits and infrastructure projects.
Muda Yusuf, the Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), told Legit.ng that rising public debt and unsustainable debt-service-to-revenue ratios have constrained the fiscal space, limiting governments’ capacity to fund critical infrastructures.
He noted:
“It is important to ensure that the debt is used strictly to fund capital projects, especially infrastructure projects, that would strengthen the productive capacity of the economy."
Nigeria’s public debt rises across all segments
The DMO data shows that Nigeria’s external debt stock increased by about $6.03 billion year-on-year, driven mainly by federal borrowing, which rose from $40.98 billion in 2024 to $46.12 billion in 2025.
State governments and the FCT also saw their external debt rise to $5.68 billion in 2025, compared to $4.80 billion in 2024.
On the domestic side, state-level borrowing increased by about N392 billion, rising from N3.97 trillion in 2024 to N4.36 trillion in 2025.
Top 10 states by domestic debt (2024 vs 2025)
The domestic debt ranking shows significant increases across most states, with Lagos maintaining a dominant lead.
Lagos State
- 2024: N900.19bn
- 2025: N1.22tn Lagos remains Nigeria’s most indebted state, with domestic debt rising by over N319bn within one year.
- 2024: N364.39bn
- 2025: N378.81bn Rivers
Ogun State
- 2024: N211.86bn
- 2025: N227.47bn Ogun’s debt rose moderately.
Delta State
- 2024: N199.58bn
- 2025: N248.83bn Delta recorded one of the largest jumps among states, increasing by nearly N50bn.
Niger State
- 2024: N140.74bn
- 2025: N142.67bn Niger saw a marginal increase year-on-year.
- 2024: N118.13bn
- 2025: N137.36bn Cross River’s debt rose significantly by over N19bn.
Enugu State
- 2024: N119.28bn
- 2025: N157.60bn
Bauchi State
- 2024: N143.95bn
- 2025: N156.05bn Bauchi’s debt rose steadily year-on-year.
- 2024: N122.19bn
- 2025:N84.85bn Akwa Ibom recorded a notable decline in domestic debt.
Imo State
- 2024:N126.14bn
- 2025: N83.75bn Imo also recorded a significant reduction in debt exposure.
Source: Getty Images
Top 10 states by external debt (2024 vs 2025)
External debt figures show Lagos remains the most exposed state, followed by Kaduna and Edo.
Lagos State
- 2024: $900.19m
- 2025: $1.17bn Lagos recorded a sharp increase of over $270m.
Kaduna State
- 2024: $25.76m (2024 baseline data adjusted)
- 2025: $684.29m. Kaduna saw a major rise in external borrowing exposure.
Edo State
- 2024: $112.99m
- 2025: $354.03m Edo’s external debt more than tripled within the period.
Ogun State
- 2024: $211.86m
- 2025: $216.99m Ogun recorded marginal growth.
Cross River State
- 2024: $118.13m
- 2025: $222.92m Cross River’s external debt nearly doubled.
Niger State
- 2024: $140.74m
- 2025: $140.58m Debt remained relatively stable.
Kano State
- 2024: $60.65m
- 2025: $128.04m Kano recorded a significant increase.
Akwa Ibom State
- 2024: $122.19m
- 2025: $55.46m Akwa Ibom’s external debt declined.
Rivers State
- 2024: $364.39m
- 2025: $170.90m Rivers recorded a decline in external exposure despite higher domestic debt.
CBN releases new interest rates for Nigerian banks
Legit.ng earlier reported that the Central Bank of Nigeria released the maximum and minimum lending rates for various banks.
The lending rate is the interest banks charge when they advance loans to their customers needing funds.
Banks charge prime lending rates to their largest, most secure, and most creditworthy customers on short-term loans.
Source: Legit.ng
