According to the latest subnational debt report by the Debt Management Office (DMO), the domestic debt of the 36 states and the FCT stood at N4.21 trillion as of September 30, 2024, reflecting a marginal decrease from N4.27 trillion recorded on June 30, 2024.
This represents a quarter-on-quarter decline of 1.27% or N54.37 billion in three months.
Nairametrics observed variations in debt levels across the states, with some recording significant increases while others showed marginal changes or reductions.
While some, like Lagos and Cross River, reduced their debt, others, such as Delta and Enugu, recorded significant increases.
The DMO’s report highlights the need for subnational governments to balance their borrowing with sustainable debt management practices to support long-term economic stability.
Below is a detailed analysis of the top 10 Nigerian states with the highest domestic debt as of the third quarter of 2024:
10. Akwa Ibom
Akwa Ibom’s domestic debt stood at N126.00 billion in Q3 2024, a decline of N6.87 billion (5.17%) from N132.87 billion in Q2 2024. The oil-producing state is known for its investment in infrastructure and industrialisation projects. The reduction in debt suggests repayment efforts or a decline in new borrowing within the quarter.
9. Enugu
Enugu’s debt stock surged to N128.07 billion in Q3 2024, an increase of N31.10 billion (32.07%) from N96.98 billion in Q2 2024. This increase is one of the largest among the top 10 states, likely reflecting increased borrowing for infrastructure development. Enugu is a significant player in the South-East region, with a focus on urban renewal and commerce.
8. Cross River
Cross River recorded one of the steepest declines in domestic debt, dropping by N22.08 billion (14.20%) to N133.41 billion in Q3 2024, down from N155.49 billion in Q2. This reduction highlights efforts to manage fiscal liabilities or reduce borrowing.
7. Niger
Niger State’s domestic debt fell slightly by N1.41 billion (0.96%) from N146.29 billion in Q2 2024 to N144.88 billion in Q3 2024. The state, located in the North-Central region, is an agricultural hub and a major source of electricity due to its hydroelectric dams. The marginal reduction suggests cautious fiscal management.
6. Bauchi
Bauchi’s debt stock declined by N1.93 billion (1.31%) to N145.29 billion in Q3 2024, from N147.23 billion in Q2. As a North-East state, Bauchi continues to rebuild infrastructure damaged by insecurity. The reduction in its debt stock reflects prudent management despite ongoing developmental pressures.
5. Imo
Imo’s domestic debt reduced by N3.80 billion (2.39%) to N155.38 billion in Q3 2024, down from N159.19 billion in Q2. As a key South-East state, Imo’s debt obligations often fund infrastructure and industrial development projects. The reduction suggests ongoing efforts to curtail borrowing or service existing debt.
4. Ogun
Ogun’s debt stood at N201.19 billion in Q3 2024, a reduction of N9.94 billion (4.71%) from N211.13 billion in Q2 2024. A commercial and industrial hub in the South-West, Ogun’s borrowing typically funds infrastructure to attract investment. The decline in its debt stock signals efforts to manage its financial obligations responsibly.
3. Delta
Delta State’s domestic debt rose significantly to N342.53 billion in Q3 2024, an increase of N37.99 billion (12.47%) from N304.54 billion in Q2. This sharp rise reflects growing fiscal demands in the oil-rich state, where borrowing often supports infrastructure and social welfare projects.
2. Rivers
Rivers maintained its debt stock at N389.20 billion in Q3 2024, unchanged from Q2. As one of Nigeria’s leading oil-producing states, Rivers uses its borrowing capacity to fund critical infrastructure and economic diversification projects. However, the DMO clarified that the domestic debt figure for Rivers remained unchanged between June and September 2024 as the data for Rivers was only updated up to June 30, 2024.
1. Lagos
Lagos State, Nigeria’s commercial capital, topped the list with a domestic debt of N853.43 billion in Q3 2024. This marked a reduction of N32.56 billion (3.67%) from N885.99 billion in Q2 2024. The state’s extensive borrowing is tied to its ambitious infrastructure projects, which aim to sustain its economic dominance. The reduction in debt stock reflects Lagos’ efforts to manage its financial commitments while financing its infrastructural plans.
