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States with relatively strong internally generated revenue (IGR) and modest debt stocks recorded the lowest debt-to-IGR ratios in 2025, with Jigawa, Ondo and Anambra occupying the top three positions.
Analysis of the 2025 Debt-to-IGR data by Nairametrics Research shows that a handful of states have built substantial revenue-generating capacity while maintaining relatively low debt burdens. On the other hand, several states continue to carry debt loads that significantly exceed their annual internally generated revenues.
A state’s debt profile is often viewed through the lens of how much it owes, but a more important measure is how easily that debt can be serviced. One of the most useful indicators of fiscal sustainability is the Debt-to-Internally Generated Revenue (IGR) ratio, which compares a state’s debt stock with the revenue it generates internally.
The debt-to-IGR ratio compares a state’s outstanding debt stock with the revenue it generates internally. A lower ratio generally signals stronger fiscal health, greater financial flexibility, and less dependence on federal allocations.
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Top 10 states with the lowest Debt-to-IGR ratio in 2025
10. Kwara – 66.06%
Kwara had the highest ratio among the first 10 states listed, at 66.06%.
The state generated N95.36 billion in IGR and debt stock of N62.99 billion in 2025, translating to a Debt-to-IGR ratio of 66.06%.
Thus, its debt stock was equivalent to approximately N66.06 for every N100 of internally generated revenue.
9. Kogi – 63.62%
Kogi recorded N43.94 billion in annual IGR and debt stock of N27.95 billion, resulting in a Debt-to-IGR ratio of 63.62%.
8. FCT – 53.00%
The FCT generated N356.34 billion in IGR while maintaining debt of N188.86 billion, producing a Debt-to-IGR ratio of 53.00%, meaning its debt stock was equivalent to approximately N53 for every N100 of IGR.
7. Kano – 52.57%
Kano generated N102.26 billion internally against a debt stock of N53.75 billion, leaving the state with a Debt-to-IGR ratio of 52.57%.
As Nigeria’s largest commercial hub in the North, having one of the larger IGR figures in the group, Kano also carried a sizeable debt stock, and its revenue base continues to support manageable debt levels.
6.Kebbi – 47.11%
Kebbi recorded an annual IGR of N31.23 billion and debt stock of N14.71 billion; thereby reporting a Debt-to-IGR ratio of 47.11%. This means the state’s debt stock was equivalent to roughly N47 for every N100 annual IGR.
5.Enugu – 38.74%
Enugu ranked fifth in the table with a debt-to-IGR ratio of 38.74% recorded one of the strongest revenue performances among the top-ranked states, generating N406.77 billion in IGR while carrying debt of N157.60 billion.
Its Debt-to-IGR ratio of 38.74% places it firmly among Nigeria’s fiscally resilient states.
Enugu’s case is particularly interesting because its IGR is substantially higher than that of the other states in the low-ratio group.
The state’s N406.77 billion IGR was also among the highest recorded nationally in 2025, based on the IGR data provided. Its relatively large revenue base therefore significantly changes the relationship between its debt stock and revenue.
4.Katsina – 21.95%
Katsina ranked fourth, with a debt-to-IGR ratio of 21.95%. The state generated N64.29 billion in IGR compared to debt obligations of N14.11 billion. Therefore, its outstanding debt was equivalent to about N21.95 for every N100 of internally generated revenue.
The relatively low ratio underscores the state’s capacity to manage debt without significant strain on internally generated resources.
3.Anambra – 20.25%
Anambra ranked third with a debt-to-IGR ratio of 20.25%.
The state posted N57.03 billion in internally generated revenue and a debt stock of N11.55 billion, translating to N20.25 in debt stock for every N100 of internally generated revenue.
Anambra’s position is noteworthy because its IGR was lower than that of several states further down the list, including Kano, FCT and Kwara. Its relatively modest debt stock helped offset its smaller revenue base
The state continues to benefit from a strong commercial ecosystem and one of the country’s most vibrant SME sectors, helping to sustain revenue generation.
2. Ondo – 13.95%
Ondo recorded an annual IGR of N60.32 billion against a debt stock of N8.42 billion, translating to a Debt-to-IGR ratio of 13.95%. This means its debt stock was equivalent to roughly N13.95 for every N100 generated internally
The state’s strong revenue performance relative to its debt burden suggests a healthy balance sheet and robust debt-servicing capacity.
1. Jigawa – 2.40%
Jigawa emerged as the state with the lowest Debt-to-IGR ratio in Nigeria in 2025. The state generated N66.73 billion in IGR while maintaining a debt stock of just N1.6 billion, resulting in a Debt-to-IGR ratio of 2.40%.
This produced a gap of more than N65 billion between its annual IGR and reported debt stock. The numbers mean that for every N100 Jigawa generated internally in 2025, its debt stock was equivalent to only about N2.40.
Jigawa’s position is particularly notable because its IGR was not the highest among the states listed. Rather, the low ratio was driven largely by the combination of a moderate IGR base and an exceptionally low debt stock.
Where Lagos stands
Lagos, despite having the largest IGR in the 2025 dataset, recorded a debt-to-IGR ratio of 68.93%. The state generated N1.769 trillion in annual IGR, compared with a debt stock of N1.219 trillion.
- This means Lagos’ debt stock was equivalent to approximately N68.93 for every N100 of IGR.
- Lagos had the largest debt stock among the states, at more than N1.2 trillion, but it also had by far the largest IGR, at N1.77 trillion. As a result, its debt-to-IGR ratio remained below 100%.
This illustrates why the ratio is useful alongside absolute debt figures: a state with a large economy and strong internally generated revenue can carry a larger nominal debt stock while recording a lower debt-to-revenue ratio than a state with much smaller debt but an even smaller revenue base.
More Insight
At the other end of the spectrum are states whose debt stocks significantly outweigh their internally generated revenues, highlighting potential fiscal vulnerabilities.
Yobe recorded the highest debt-to-IGR ratio at 506.02%. The state generated only N16.01 billion in annual IGR, against a debt stock of N81.00 billion. That means Yobe’s debt stock was equivalent to more than five times its annual internally generated revenue.
- Benue: 362.68% (IGR: N29.57 billion, Debt stock: N107.23 billion)
- Taraba: 303.65% (IGR: N28.16 billion, Debt stock: N85.51 billion)
- Bauchi: 295.61% (IGR: N52.79 billion, Debt stock: N156.05 billion).
- Cross River: 234.24% (IGR: N58.64 billion, Debt stock: N137.36 billion)
- Sokoto: 231.45% (IGR: N20.48 billion, Debt stock: N47.39 billion)
- Niger: 214.96% (IGR: N66.37 billion, Debt stock: N142.67 billion).
What you should know
The 2025 rankings underscore significant differences in fiscal sustainability across Nigeria’s states. States such as Jigawa, Ondo, Anambra, Katsina, and Enugu stand out for maintaining low debt burdens relative to their internally generated revenue, demonstrating stronger debt-servicing capacity and greater fiscal flexibility.
At the other end of the spectrum, states with Debt-to-IGR ratios exceeding 200% face a heavier debt burden relative to their revenue base, highlighting the need to expand internally generated revenue and strengthen fiscal management.
The figures also show why debt sustainability cannot be assessed by debt size alone. Although Lagos carries one of the largest debt stocks in the country, its 68.93% Debt-to-IGR ratio reflects the strength of its revenue-generating capacity, making its debt profile considerably more sustainable than those of many lower-revenue states.
