Nigeria’s most indebted states: Lagos, Kaduna, Edo top list

Lagos and Kaduna states lead Nigeria’s subnational debt chart, with combined external and domestic debt profiles that far outpace those of other states, new figures show.

According to the latest data by the Debt Management Office, Lagos held the largest total debt stock of ₦2.71 trillion as of December 31, 2024, made up of ₦1.81 trillion in external debt and ₦900 billion in domestic obligations. Kaduna follows distantly with ₦993 billion in total debt, though heavily skewed towards external borrowing, which accounts for ₦968 billion of the sum.

Edo and Rivers states ranked third and fourth with ₦705 billion and ₦673 billion respectively. Unlike Kaduna, Rivers’ debt portfolio leans more on the domestic side, with ₦364 billion domestic and ₦309 billion external.

In all, Nigeria’s 36 states and the Federal Capital Territory (FCT) collectively owe ₦11.37 trillion, comprising ₦7.42 trillion in external debt and ₦3.95 trillion in domestic debt.

The data underscores a significant tilt toward external borrowing among certain states, raising concerns about vulnerability to exchange rate fluctuations and global credit tightening.

States with the lowest total debts include Jigawa (₦37 billion), Yobe (₦72 billion), and the FCT (₦93 billion).

Notably, some states maintain relatively balanced debt portfolios. For instance, Bayelsa has nearly equal shares of external (₦86 billion) and domestic (₦82 billion) debt, while Delta relies more on domestic sources, with ₦199 billion domestic compared to ₦88 billion external.

Debt levels can reflect a state’s infrastructural ambition, fiscal capacity, or reliance on federal allocations. However, analysts caution that unsustainable debt accumulation without corresponding economic growth can hamper development and strain public finances.

Here is the full list: