Least indebted states by debt stock as of September 2025

A few major states account for a large chunk of Nigeria’s debt profile, yet some others continue to maintain low and stable debt levels. According to data from the Debt Management Office, the total domestic debt of Nigeria’s 36 states and the FCT rose slightly to N4.002 trillion in September 2025, up from N3.96 trillion in June 2025. Despite this marginal increase of 0.98% at the subnational level, a closer look shows that many states at the lower end of the table maintained modest debt levels, highlighting reduced liabilities during the quarter. Below are the 10 least indebted states in Nigeria – September 2025 Yobe – N36.38 billion Yobe closed the list as the tenth state with the least debt of N36.38 billion, accounting for 0.91% of total state debt. This amounted to a 4.31% decline from N38.01 billion in June, reflecting steady repayments and reduced borrowing pressure. Anambra – N26.67 billion Anambra recorded N26.67 billion in debt, which contributed 0.67% to the subnational debt profile. This is a 4.98% decrease from N28.07 billion in June, which suggests that the state continued to repay its debt and cautious with its borrowing practices. Kaduna – N23.13 billion Kaduna reported a total domestic debt stock of N23.13 billion, which accounts for 0.58% of the total debt stock. It also represents a 3.97% decline from N24.09 billion recorded in June. The drop in value indicates that the state’s short-term borrowing reduced, or it serviced part of its obligations during the quarter. Nasarawa – N22.41 billion Nasarawa debt amounted to N22.41 billion in September 2025, which is 0.56% of total subnational debt. This also marked 6.37% decrease from N23.94 billion in June suggesting gradual repayment of existing debt and little or no new borrowing. Katsina – N17.02 billion Katsina’s debt fell to N17.02 billion, accounting for 0.43% of the subnational total. This marks a 15.71% drop from N20.19 billion recorded in June. The decline suggests constant repayments or improvement in fiscal spending during the period. Kebbi – N14.84 billion Kebbi’s debt stood at N14.84 billion, contributing 0.37% of total debt. The 0.86% decrease from N14.97 billion in June indicates stable debt management with minimal new borrowing. Ebonyi – N14.64 billion Ebonyi posted a debt stock of N14.64 billion in debt, representing 0.37% of total debt. It reflects a 7.19% decline from N15.77 billion in June. The reduction indicates gradual repayments or less reliance on borrowing within the period. Kogi – N14.31 billion Kogi reduced its debt significantly to N14.31 billion, accounting for 0.36% of the subnational debt stock. The figure reflects a notable 23.84% drop from N18.79 billion recorded in June, it is one of the sharpest reductions recorded nationwide. This suggests active repayment or restructuring of existing obligations. Ondo – N9.53 billion Ondo recorded a debt stock of N9.53 billion, representing 0.24% of total state debt. This marks a 10.48% decline from N10.65 billion in June, suggesting the state repaid part of its debt obligations or avoided new borrowings during the quarter, helping to reduce its exposure. Jigawa – N1.60 billion Jigawa remains the least indebted state in Nigeria, its debt stock rose significantly to N1.60 billion, an 87.69% increase from N852.49 million recorded in June 2025. This accounts for just 0.04% of the total N4.002 trillion debt profile. Although the percentage increase appears large, the total amount is still very small compared to most states. The rise reflects fresh borrowing. This shows that the state has been keeping a low debt profile for a while. Debt concentration remains uneven Combining all the debt of these ten least indebted states, it totals N180.53 billion which accounts for less than 5% of the total subnational debt, exposing the debt concentration among states. By contrast, Lagos alone accounts for over 26% of the entire debt stock, while the top five most indebted states collectively contributed a substantial share of 40.9% to the total debt stock. Some states are heavily relying on loans to push development projects forward or deal with budget gaps, whereas others are taking a more conservative approach by managing their debt level. For states with the lowest debts, the reduced debt offers protection against rising interest rates, more expensive debt servicing and economic uncertainty, though it could also mean they have less access to funding.

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