Oil-producing states have reduced their domestic debt burden by about N610.84bn between June 2023 and March 2025, buoyed by record inflows from the 13 per cent derivation fund.
The analysis is based on the latest subnational debt data from the Debt Management Office (DMO), though figures for Q2 2025 are yet to be published. In June 2023, the combined domestic debt of the nine oil-producing states stood at N1.66tn, representing 28.6% of Nigeria’s total subnational debt of N5.82tn.
By March 2025, their collective obligations had dropped to N1.05tn, accounting for 27.2% of the total state-level debt of N3.87tn. Among the biggest movers was Delta State, which slashed its domestic debt from N465.40bn in June 2023 to N204.72bn in March 2025—a drop of over 55%.
Akwa Ibom also trimmed its debt by more than 40%, from N199.58bn to N118.21bn. Bayelsa cut its obligations from N134.50bn to N73.53bn, while Imo went from N220.83bn to N122.09bn.
Edo, Anambra, Abia, and Ondo all posted notable declines, with Ondo State achieving the sharpest proportional cut—reducing its debt from N74.03bn to just N11.76bn.. . Continue..Reading. .
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