Most indebted Nigerian states as of September 2025 

Subnational debt had become concentrated in just a handful of states, with a few of them carrying a far larger share of the country’s total subnational borrowing than the rest, as of September 2025.

Latest data from the Debt Management Office (DMO) show that the combined domestic debt of Nigeria’s 36 states and the FCT reached N4.00 trillion by September 2025, slightly higher than the N3.96 trillion recorded in June.

The marginal 0.98% rise suggests that fresh borrowings slightly outpaced the repayments in the period under review.

The report also revealed that a large share of subnational debt is concentrated in just a handful of states  Lagos, Rivers, Delta, Enugu, and Ogun, which together owe nearly N2.04 trillion, roughly half of the entire N4 trillion debt stock.

Lagos stands far ahead of every other state, making up 26.13% of the total debt, more than a quarter of the total debt.

This is not far-fetched, considering the size, scale and demand of running the city.

Top 10 most indebted states in Nigeria – September 2025 

Akwa Ibom – N95.51 billion

Akwa Ibom’s debt stock dropped to N95.51 billion, down from N105.82 billion in June 2025, a reduction of about 9.75%.

This means the state now makes up just 2.39% of the country’s total debt, suggesting that it either slowed down new borrowing or made meaningful progress with repayments during the quarter.

Benue –N107.25 billion

Benue recorded one of the steepest drops among the major states, cutting its debt by 19.67% from N133.53 billion in June to N107.25 billion by September 2025.

With this decline, the state now represents about 2.68% of the country’s total debt, pointing to more active repayment efforts or some form of debt restructuring during the quarter.

Cross River – N141.94 billion

The debt stock of Cross River dropped by 3.62%, from N147.28 billion in June 2025 to N141.94 billion by September, accounting for about 3.55% of the total debt.

The decline reflects that the state has continuously repaid its debt or consciously slowed down on fresh borrowing during the period.

Niger – N143.50 billion 

Niger printed a slight rise of 1.39% in its debt profile to N143.50 billion from N141.52 billion in June. This means the state now represents about 3.58% of the country’s total debt.

The moderate increase suggests solid debt management, with marginal new borrowing during the quarter.

Bauchi – N158.20 billion

Notably, Bauchi’s debt rose, climbing by 10.15% from N143.62 billion in June to N158.20 billion by September 2025. With this increase, the state now accounts for about 3.95% of the country’s total debt.

The increase means that Bauchi incurred more borrowing to support development projects as well as to reduce the budget gaps.

Ogun – N168.09 billion

Ogun’s debt level inched up by 3.17%, rising from N162.92 billion in June to N168.09 billion by September 2025. This now puts the state’s share at about 4.20% of the national total.

The modest uptick reflects the increased borrowing of the state to support ongoing capital projects.

Enugu – N194.72 billion

Enugu’s debt increased by 7.88%, rising from N180.49 billion in June to N194.72 billion by September 2025. This now puts the state’s share at about 4.86% of the country’s total debt.

The surge in debt suggests that the state has taken on additional loans to support infrastructure projects during the period.

Delta – N247.17 billion

Delta recorded a notable surge in its debt profile, rising by 20.77% from N204.67 billion in June to N247.17 billion in September 2025, placing the state at 6.17% of Nigeria’s total subnational debt.

The massive increase suggests that Delta incurred substantial new loans to finance major infrastructure projects and to refinance existing commitments during the quarter.

Rivers – N381.21 billion

Rivers retained its position as the second most indebted state, as its debt level rose by 4.61% to N381.21 billion in September 2025 from N364.39 billion in June.

This now puts the state’s share at about 9.52% of the national total.

The increase reflects the continuous borrowings by the state to support major capital projects and provide budgetary backing during the period.

Lagos –N1.046trillion 

Lagos remains the country’s most heavily indebted state, with its debt stock standing at N1.046 trillion, about 26.13% of all subnational borrowings.

The figure printed a marginal increase of 0.43% from the N1.041 trillion recorded in June 2025.

Despite the marginal uptick, the state’s debt is still under control, supported by the state’s strong internally generated revenue base, allowing managed borrowing without straining its fiscal position.

States with notable debt increases 

Other states that recorded substantial jumps in their debt levels include:

• Borno – up 111.99%, from N22.28 billion to N47.23 billion, indicating increased borrowing activities and infrastructure financing.
• Jigawa – up 87.69%, from N852 million to N1.6 billion, though still a small portion of the national debt.
• Delta – up 20.77%, suggesting new borrowing activities of over N40 billion.
• Federal Capital – up 11.11% from N71.04 billion to N78.93 billion
• Bauchi – up 10.15% from N143.62 billion to N158.20 billion
• Kwara – up 9.14% from N57.32 billion to N62.56 billion
• Enugu – up 7.88%, reflecting increased fiscal activity.

What this means 

Nigeria’s total state‑level debt edged up from N3.96 trillion in June to N4.00 trillion by September, showing that many states are still turning to loans to support development and meet budget needs, even as the changes vary from state to states.

Several states managed to bring their figures down through repayments and tighter spending, while others added more debt to meet infrastructure needs or make up for weak revenue.

Going forward, how well states handle their debts will depend on whether they can grow their own revenue, control costs, and ensure that whatever they borrow delivers economic value.