Tuesday, April 28, 2026 - Lagos State has emerged as the most indebted state in
Nigeria.
According to the National Bureau of Statistics (NBS), as at
the fourth quarter (Q4) 2025, Lagos state is owing a total of N1.22 trillion
and $1.17 billion as domestic and external debts respectively.
Making the announcement on Monday, April 27, in its Q4 2025
domestic and external debt report, NBS said the country’s total debt stock,
comprising domestic and external debt, during the quarter rose from N153.29
trillion or $103.94 billion in Q3 2025 to N159.28 trillion ($110.97 billion) in
Q4 2025.
The report said this is an increase of 3.90 per cent on a
quarter-on-quarter basis.
According to the report, total external debt stood at N74.43
trillion, while total domestic debt was N84.85 trillion in Q4 2025.
The share of external debt (in naira value) to total public
debt was 46.73 per cent in Q4 2025, while the share of domestic debt (in naira
value) to total public debt stood at 53.27 per cent.
Among the subnationals, Lagos state recorded the highest
domestic debt in Q4 2025 with N1.22 trillion, followed by Rivers with N378.81
billion, while Jigawa state recorded the lowest with N1.60 billion, followed
by Ondo with N8.42 billion.
Lagos State also recorded the highest external debt over the
reference period with $1.17 billion, followed by Kaduna with $684.29 million,
while FCT had the lowest with $26.80 million, followed by Zamfara with $41.93
million.
Other heavily indebted states are Bauchi with
$220.57 million and N156.05 billion as external and domestic debts
respectively; Delta with $63.42 million and N248.83 billion as external and
domestic debt respectively, and Enugu with $99.88 million and N157.60 billion
as external and domestic debts.
The issue of the rising debt burden has been a course for
concern for Nigerians as the debt service obligation is putting high pressure
on the country’s revenue.
Early this month, the World Bank warned that the country’s
rising debt service costs are reducing its ability to fund critical
infrastructure. It noted specifically the sharp drop in capital spending to 1.0
per cent of GDP from 1.3 per cent in 2024 because debt servicing is crowding
out investment.
The International Debt Report 2025 noted that Nigeria and
other Sub-Saharan African countries must initiate what it call export
diversification and fiscal reforms to address their rising debt challenges. It
noted that debt levels and servicing burdens continued to rise even as growth
remains subdued, underscoring persistent fiscal stress.
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