External debt owed by 32 Nigerian states and the Federal Capital Territory (FCT) rose by a combined $944.12 million in 2025, according to data from the Debt Management Office (DMO) analysed by Nairametrics.
The DMO data also showed that the total external debt stock of states and the FCT increased from $4.80 billion as of December 31, 2024, to $5.68 billion as of December 31, 2025, representing a net increase of $884.66 million or 18.43% year-on-year.
The lower net increase was because four states recorded a combined decline of $59.46 million, partly offsetting the $944.12 million increase recorded by the 32 states and the FCT.
This means that without the debt reduction by Edo, Rivers, Anambra and Bayelsa, the subnational external debt stock would have risen by almost $1 billion in 2025.
What the data shows
The data showed that 33 out of 37 subnational entities, comprising 32 states and the FCT, recorded increases in their external debt stock. This represents 89.19% of the total number of states and the FCT, while the four states that reduced their debt accounted for 10.81%.
- The total external debt of states and the FCT stood at $5.68 billion at the end of 2025, up from $4.80 billion in 2024. This translated to a year-on-year increase of $884.66 million.
- The DMO figures showed that the entire subnational external debt stock in 2025 was split between multilateral loans of $5.25 billion and bilateral loans of $430.96 million. There were no commercial, promissory notes, Eurobond, diaspora bond or syndicated loan obligations recorded against the states and the FCT in the period.
- This means multilateral loans accounted for about 92.42% of states’ and FCT’s total external debt, while bilateral loans accounted for 7.58%.
In 2024, the DMO reported subnational external debt at $4.80 billion, comprising $4.50 billion in multilateral loans and $303.61 million in bilateral loans.
This shows that multilateral debt rose by $757.30 million, while bilateral debt increased by $127.35 million in 2025. The increase in multilateral obligations accounted for the larger share of the year-on-year rise.
Katsina, Niger, Kogi, Plateau lead fresh increase
Katsina recorded the largest increase in external debt in dollar terms, rising by $100.16 million, from $100.46 million in 2024 to $200.62 million in 2025. This represented a 99.70% year-on-year increase.
- Niger followed with an increase of $73.38 million, as its external debt rose from $67.21 million to $140.59 million, representing 109.18% growth.
- Kogi recorded the third-largest increase, with its debt stock rising by $66.08 million, from $52.41 million to $118.49 million, representing 126.07% growth.
- Plateau followed with an increase of $60.24 million, as its external debt rose from $32.17 million to $92.41 million. This represented the highest percentage increase among all states, at 187.24%.
- Kaduna also recorded a significant increase of $59.19 million, with its external debt rising from $625.10 million to $684.29 million, though its percentage growth was lower at 9.47% because of its already large debt base.
Other states with notable increases included Gombe, whose debt rose by $55.67 million or 168.70%; Imo, up by $45.64 million or 63.90%; Sokoto, up by $42.92 million or 84.15%; Oyo, up by $34.71 million or 65.73%; and Bauchi, up by $33.75 million or 18.07%.
In percentage terms, the biggest increases were recorded by Plateau, Gombe, Yobe, Benue, Kogi, Niger, Katsina, Jigawa, Sokoto and Oyo.
Plateau’s debt rose by 187.24%, Gombe by 168.70%, Yobe by 136.56%, Benue by 128.16%, Kogi by 126.07%, Niger by 109.18%, Katsina by 99.70%, Jigawa by 95.87%, Sokoto by 84.15%, and Oyo by 65.73%.
Four states reduce debt by $59.46 million
Only four states recorded declines in external debt in 2025. They were Edo, Rivers, Anambra and Bayelsa.
- Edo posted the largest decline, as its debt stock fell by $29.02 million, from $383.05 million in 2024 to $354.03 million in 2025. This represented a decline of 7.58%.
- Rivers followed with a decrease of $28.69 million, as its external debt dropped from $199.58 million to $170.90 million, representing a 14.37% decline.
- Anambra’s external debt declined by $1.11 million, from $103.69 million to $102.58 million, representing a decrease of 1.07%.
- Bayelsa recorded the smallest decline in dollar terms, as its external debt fell by $642,034, from $56.10 million to $55.46 million, representing a 1.14% drop.
Cumulatively, the four states reduced their external debt by $59.46 million. This partly offset the $944.12 million increase recorded by the other 33 subnational entities, leaving a final net increase of $884.66 million.
What you should know
Nairametrics earlier reported that Nigeria’s total public debt increased to N159.28 trillion as of December 31, 2025, according to the data released by the Debt Management Office (DMO).
The states and FCT accounted for 12% of Nigeria’s total external debt stock of $51.81 billion as of December 2025, while the Federal Government accounted for 89%, according to the DMO. This was a slight increase from 2024, when states and the FCT accounted for 10% of Nigeria’s total external debt stock of $45.78 billion.
Lagos remained the most externally indebted subnational government, with a debt stock of $1.17 billion as of December 2025, up slightly from $1.169 billion in 2024. The increase of $4.83 million represented only 0.41% growth.
Kaduna ranked second with $684.29 million, followed by Edo with $354.03 million, Cross River with $222.92 million, Bauchi with $220.57 million, Ogun with $217.00 million, Katsina with $200.62 million, Rivers with $170.90 million, Niger with $140.59 million, and Ekiti with $136.31 million.
