Nigeria’s subnational debt profile witnessed a significant shift in 2024, as new data revealed that the combined debt stock of the 36 states declined by a massive 32.32% year-on-year, falling from N5.86 trillion in 2023 to N3.97 trillion in 2024.
The contraction signals a renewed focus by several state governments on debt sustainability, budgetary discipline, and alternative financing models amid growing fiscal pressures.
However, despite this broad-based decline, some states remain deeply entrenched in the country’s debt landscape, either due to existing financial obligations or a strategic push for infrastructure-led growth.
Here’s a breakdown of the top 10 states with the highest public debt stock in 2024 and how they compare year-on-year.
Top 10 Most Indebted Nigerian States in 2024
Ogun’s debt decreased by 23.98% from N278.68 billion in 2023, buoyed by a surge in Internally Generated Revenue (IGR). The state appears to be on a debt-reduction trajectory, likely influenced by improved internally generated revenue (IGR) and refinancing of legacy loans.
With a projected IGR of N240 billion in 2024, Ogun remains one of the least FAAC-dependent states in Nigeria. Enhanced tax collection, digital revenue systems, and economic base diversification supported the state’s refinancing of legacy loans and reduced the need for new borrowings.
The 2024 budget reflected judicious allocation, prioritizing infrastructure that enhances competitiveness, earning Ogun investor confidence and public trust.
