Lagos Tops Nigeria’s Debt Chart with N1.22trn, $1.17bn Liabilities

Lagos State has recorded the highest debt burden among Nigeria’s states, owing N1.22 trillion in domestic debt and $1.17 billion in external debt as of the fourth quarter of 2025.

This was disclosed in the latest debt report released by the National Bureau of Statistics (NBS), which also showed that Nigeria’s total public debt rose to N159.28 trillion ($110.97 billion) in Q4 2025, up from N153.29 trillion in the previous quarter—representing a 3.9 per cent increase.

According to the report, external debt stood at N74.43 trillion, accounting for 46.73 per cent of the total, while domestic debt was N84.85 trillion, making up 53.27 per cent.

Among subnational governments, Lagos led in domestic debt, followed by Rivers State with N378.81 billion, while Jigawa recorded the lowest at N1.60 billion, with Ondo also among the least indebted at N8.42 billion.

In terms of external debt, Lagos again ranked highest with $1.17 billion, followed by Kaduna State with $684.29 million. The Federal Capital Territory had the lowest external debt at $26.80 million, while Zamfara recorded $41.93 million.

Other states with notable debt profiles include Bauchi, which owes $220.57 million externally and N156.05 billion domestically; Delta, with $63.42 million and N248.83 billion; and Enugu, with $99.88 million in external debt and N157.60 billion locally.

The rising debt burden continues to raise concerns, as increasing debt servicing costs are putting pressure on government revenue. The World Bank recently warned that Nigeria’s growing debt obligations are limiting its ability to invest in critical infrastructure, noting a decline in capital expenditure to 1.0 per cent of GDP from 1.3 per cent in 2024.

Similarly, the International Debt Report 2025 advised Nigeria and other Sub-Saharan African countries to adopt export diversification and fiscal reforms to manage rising debt levels, warning that persistent borrowing amid slow economic growth could deepen fiscal challenges.