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
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.
Where are these debts taking us to??
And the fact that we hardly even see results that should come from the borrowing..