Nigeria’s ten least indebted states owed a combined total of N191.8 billion in domestic debts in Q1 2025, according to the Debt Management Office (DMO).
This represents 4.96% of the country’s total sub-national debt during the quarter.
In the period under review, Jigawa emerged as the state with the lowest sub-national debt in the federation.
On a year-on-year basis, sub-national debt among these states declined by 4.91%, from N4.07 trillion in Q1 2024 to N3.87 trillion in Q1 2025. States such as Anambra, Borno, and Kaduna also recorded reductions in their debt profiles over the same period.
The latest DMO report highlights a reshuffling in Nigeria’s sub-national debt landscape, influenced by fiscal constraints, infrastructure development ambitions, shifts in oil revenue, and tighter federal allocations.
This analysis examines the debt trends of the top 10 least indebted states.
Unlike many states on this list, Nasarawa State’s domestic debt profile increased from N23.76 billion in Q1 2024 to N24.73 billion in Q1 2025. This represents a 4.08% year-on-year increase.
The Governor of Nasarawa State, Abdullahi Sule, has attributed the increasing debt profile in the state to challenging security concerns, inherited debt, and infrastructural deficits.
He disclosed that the state had settled debts amounting to over N57 billion, which included bailout funds, budget support, and the N10 billion project support facility granted to each state before his administration took office.
Also, the Nasarawa state government had provided an extra N137 million from state coffers to clear outstanding obligations to contractors as part of ensuring infrastructural developments in the state.
