In the first half of 2025, 26 states in Nigeria increased their external debt by a total of $239 million in fresh borrowings, according to the latest published figures by the Debt Management Office (DMO).
According to the debt office, Nigeria’s external debt stood at $46.98 billion.
Total state external debt rose only slightly, from $4.8 billion to $4.812 billion, due to aggressive repayments by top indebted states.
But while some top indebted states repaid their external loans, others accumulated more external loans in the first six months of this year.
Imo, the state with the largest increase saw its external debt rise by $36.2 million, the highest among the states. This was closely followed by Oyo with an increase of $35.7 million, and Kaduna, which saw an additional $33.6 million in debt. Enugu State added $27.3 million, while Ogun followed with an increase of $21.8 million in its external debt.
Other notable external debt contributors
Several other states also contributed significant increases to Nigeria’s total external debt stock.
- Katsina added $14.2 million
- Borno – $8.7 million
- Kwara – $6.7 million
- Gombe – $5.8 million
- Nasarawa – $5.7 million
- Osun – $5.1 million
- Plateau – $5.1 million
Moving further down the list, Akwa Ibom added $4.8 million to its external debt, while Ebonyi and Abia saw increments of $4.5 million and $3.8 million, respectively. The northern states of Yobe, Taraba, and Kogi contributed $3.4 million, $3.1 million, and $2.9 million, respectively.
States with least addition in external debt stock
In the bottom half of the list, Adamawa saw its external debt rise by $2.1 million, while Ondo added $2.0 million to its debt stock. Niger and Sokoto had relatively smaller increases, with external debt rising by $1.9 million and $1.2 million, respectively. The least increases came from Jigawa ($1.2 million), Kebbi ($1.1 million), Zamfara ($554,100) and Bayelsa ($438,000).
Key repayments by high-debt states reduce debt stock
However, aggressive repayments by several high-debt states left the country’s total sub-national external obligation almost unchanged.
A total of 11 states, including the FCT, reduced their debt through higher repayments. Lagos, Edo, Rivers, and Bauchi accounted for most of the $227 million in reductions.
Top five indebted states accounted for N4.66 trillion
Of the country’s total public debt stock of N152.39 trillion in Q2 2025 (up from N149.38 trillion in Q1 2025), the top five indebted states collectively owed a staggering N4.66 trillion, with Lagos State maintaining its long-held position as Nigeria’s most indebted subnational, with a total debt of N2.496 trillion:
- N1.04 trillion in domestic debt
- N1.456 trillion in external debt, calculated at an exchange rate of N1,400 per dollar
The state’s heavy borrowing, larger than the combined debt of multiple geopolitical zones, is a reflection of the size of its economy as Nigeria’s economic hub and highest revenue-generating state.
Kaduna State ranks second with N1.507 trillion in total debt, comprising:
- N585.72 billion domestic
- N922.18 billion external
Rivers State is third with N327.55 billion total debt (N74.05 billion domestic; N253.5 billion external).
Delta State follows with N232.16 billion in cumulative debt, split between N102.49 billion domestic and N129.67 billion external.
The Federal Capital Territory (FCT) rounds out the top five with about N101.4 billion, making it the least indebted among the major borrowers, after repayment of part of its external debt.
