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
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.
