As Nigeria continues to grapple with economic headwinds, new data from the Debt Management Office (DMO) has shed light on the growing financial burdens carried by state governments across the country. Topping the list is Lagos State, with a staggering domestic debt of ₦900.19 billion as of December 2024—more than double that of the second-highest debtor, Rivers State.
Rivers State’s debt stands at ₦364.39 billion, reflecting its own share of the fiscal strain, while Ogun State, another South-Western state, is third with ₦211.86 billion. Delta State follows closely with ₦199.58 billion in domestic debt, and Bauchi, the leading state from the North-East, takes the fifth spot with ₦143.95 billion.
Other states in the top 10 include Niger (₦140.74 billion), Imo (₦126.14 billion), Benue (₦122.58 billion), Akwa Ibom (₦122.19 billion), and Enugu (₦119.28 billion). These figures reflect the financial realities many governors face as they attempt to fund development projects, pay salaries, and manage recurrent expenditures in the face of dwindling federal allocations and rising inflation.
A regional analysis paints an even clearer picture: the South-West and South-South geopolitical zones dominate the list, with Lagos, Ogun, Rivers, and Delta collectively accounting for over ₦1.6 trillion in domestic debt. This trend speaks to the high cost of maintaining infrastructure and public services in Nigeria’s economic hubs and oil-producing regions.
Experts note that while some of these debts are tied to long-term capital projects that could boost economic productivity, the rising figures also call for stricter fiscal discipline, increased internally generated revenue (IGR), and transparency in loan utilization.
The figures, curated by data intelligence firm Statisense and sourced from the DMO, provide a critical snapshot of the country’s subnational debt landscape and highlight the urgent need for sustainable debt management practices across all tiers of government.
By
Anthony Emeka Nwosu
