Ten States Owing the Most in Nigeria

Nigeria is wallowing in huge debts at both national and subnational levels, but this is not unusual. Most governments are unable to deliver public services effectively while relying solely on their revenue and have to resort to other funding sources.

Federal allocations, Value Added Tax (VAT), grants from development partners, the Nigerian Government, and multilateral institutions, public-private partnerships (PPPs), bonds, asset sales and concessions are some alternative funding sources states can rely on, but even these may not be sufficient. So, loans come to the rescue.

According to the Debt Management Office (DMO), 36 states and the Federal Capital Territory (FCT) collectively recorded a combined domestic and external debt stock of N4.002 trillion as at September 30, 2025.

The DMO further revealed that, within the review period, the country’s total public debt stock stood at N153.29 trillion, with debt owed by states and the FCT accounting for 2.61 percent.

Africa Faces $90 Billion Debt Wall—S&P — Africa Faces $90 Billion Debt Wall – S&P. Credit: Business Insider Africa.

Ten states alone accounted for N2.68 trillion, about 67 percent of the total subnational debt. Leading this list is Lagos State, with a debt profile of N1.045 trillion, representing roughly 26 percent of the total debt stock of all 36 states and the FCT combined. This is not the first time Lagos has attained the status of Nigeria’s most indebted state.

In 2024, Lagos State Governor Babajide Sanwo-Olu defended the state’s huge debt profile. According to the governor, borrowing is part of a broader strategy to secure the state’s economic future.

Rivers State ranks second among Nigeria’s most indebted states, with a debt profile of N381.205 billion, while Delta is third, with a debt stock of N247.171 billion.

These are Nigeria’s 10 most indebted states and their debt stock:

Lagos – N1.045 trillion
Rivers – N381.205 billion
Delta – N247.171 billion
Enugu – N194.715 billion
Ogun – N168.093 billion
Bauchi – N158.197 billion
Niger – N143.469 billion
Cross River – N141.941 billion
Benue – N107.254 billion
Akwa Ibom – N95.506 billion.

Author

Olayide Soaga

Olayide Oluwafunmilayo Soaga is a Nigerian journalist with four years of professional experience. She reports on health, gender, education and development, with a focus on impact-driven storytelling.

She was runner-up for the Centre for Journalism Innovation and Development (CJID) Best Solutions Journalism Award in West Africa in 2024 and a finalist for the 2025 West Africa Media Excellence Awards.