Anifowose Samson
The Debt Management Office (DMO) has yesterday disclosed that the combined domestic debt of Nigeria’s 36 states and the Federal Capital Territory (FCT) rose from ₦6.14 trillion in March 2024 to ₦6.70 trillion as of March 31, 2025.
The report shows an increase of ₦566.87 billion within one year, representing a 9.2 percent growth in the total domestic debt stock of sub-national governments.
Lagos State remains the most indebted with ₦1.24 trillion, up from ₦1.13 trillion in March 2024. It is followed by Rivers State with ₦208.1 billion, Akwa Ibom with ₦198.23 billion, and Anambra with ₦216.1 billion.
Meanwhile, Yobe, Ebonyi, and Borno States recorded the highest year-on-year debt increases, with Yobe’s domestic debt rising by 20.2 percent, Ebonyi by 20.4 percent, and Borno leading with a 20.6 percent spike.
Among the states with moderate increases are Akwa Ibom (4.8%), Anambra (4.0%), and Delta (4.5%).
The DMO report further indicates that 33 out of the 36 states and the FCT serviced and reduced parts of their domestic debts, aided by improved federal allocations following the fuel subsidy removal and exchange rate reforms.
According to the report, the least indebted states remain Yobe (₦49.41bn), Ekiti (₦43.58bn), and Kebbi (₦40.12bn).
The DMO also stated that while domestic borrowing remains a tool for financing development, states must strike a balance between debt sustainability and economic growth.
Financial analysts have advised that the increased allocation should be tied to productive projects capable of generating revenue and creating jobs to ensure long-term debt viability.
The DMO’s quarterly report is an important metric used by investors, policymakers, and the international community to assess fiscal discipline and transparency at sub-national levels.
DMO Release Report:
