Eleven states and the Federal Capital Territory (FCT) accounted for a combined N373.06 billion increase in domestic debt between December 2024 and September 2025, even as total subnational debt grew only marginally.
Latest figures from the Debt Management Office (DMO) show that total domestic debt for the 36 states and the FCT rose from N3.97 trillion as of December 31, 2024, to N4.00 trillion as of September 30, 2025.
The N34.84 billion increase represents a modest 0.88 per cent growth at the aggregate level. However, underlying data reveal a sharp divergence in borrowing patterns across states.
Debt concentration deepens
According to the DMO, 11 states and the FCT increased their combined domestic debt from N2.22 trillion in December 2024 to N2.59 trillion in September 2025 — a 16.81 per cent jump within nine months.
ALSO READ Q3 2025: Nigeria’s public debt climbs to N153.29trn — DMO
Consequently, debt concentration shifted significantly. These 12 subnational entities accounted for 55.94 per cent of total domestic debt at the end of 2024 but now represent 64.77 per cent of the N4.00 trillion stock.
Lagos State remained Nigeria’s largest subnational domestic debtor, with its debt stock rising from N900.19 billion to N1.05 trillion — an increase of N145.62 billion or 16.18 per cent.
Enugu State recorded one of the sharpest increases, expanding its domestic debt from N119.28 billion to N194.72 billion, a surge of N75.43 billion or 63.24 per cent.
Delta State grew its debt from N199.58 billion to N247.17 billion, adding N47.60 billion or 23.85 per cent.
Rivers State increased its domestic debt from N364.39 billion to N381.21 billion, reflecting a N16.81 billion rise or 4.61 per cent growth. The DMO clarified that Rivers’ September figure reflects its position as of June 30, 2025.
Other states that recorded notable increases include Cross River State (up N23.81 billion), Bauchi State (up N14.25 billion), and Borno State, which posted the highest percentage growth in the group at 69.19 per cent.
The Federal Capital Territory also expanded its domestic debt from N63.56 billion to N78.93 billion, a N15.37 billion increase or 24.19 per cent.
Similarly, Taraba State, Kwara State, Niger State and Jigawa State recorded varying levels of increases, with Jigawa posting the smallest absolute rise of N270.77 million.
25 states cut debt stock
In contrast, 25 states reduced their domestic debt within the same period, offsetting much of the fresh borrowing and limiting overall growth to 0.88 per cent.
Kogi State recorded the steepest percentage decline, slashing its debt by 65.59 per cent from N41.59 billion to N14.31 billion.
Ogun State posted the largest absolute reduction, cutting N43.77 billion from its debt stock.
Edo State, Imo State, Plateau State, Akwa Ibom State and Bayelsa State also recorded substantial cuts.
Other states that trimmed their domestic debt include Abia State, Benue State, Gombe State, Sokoto State, Katsina State, Adamawa State, Kano State, Yobe State, Nasarawa State, Ekiti State, Anambra State, Kaduna State, Kebbi State, Osun State, Ondo State, Zamfara State and Ebonyi State.
Overall, the DMO data highlight a widening fiscal divergence among subnational governments, with aggressive borrowing by a handful of states and the FCT counterbalanced by significant repayments across the majority.
