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Four Nigerian states recorded more than 20% reductions in their domestic debt stocks in the first half of 2026, led by Enugu, which cut its debt by more than half during the period.
Nairametrics research analysis of the Debt Management Office (DMO) data shows that Enugu, Jigawa, Ondo and Zamfara recorded year-to-date reductions of more than 20% between December 2025 and June 2026.
The four states had a combined domestic debt stock of N126.85 billion as of June 2026, down from N224.66 billion in December 2025.
This represents a 43.53% reduction, or N97.81 billion, during the first six months of the year.
The reductions were measured against each state’s December 2025 debt stock and the latest figure as of June 2026.
What the data is saying
Enugu recorded the largest reduction at 52.73%, followed by Jigawa at 34.71%, Ondo at 26.82% and Zamfara at 20.86%.
Zamfara – N45.14 billion
Zamfara recorded a domestic debt stock of N45.14 billion as of June 2026, down from N57.04 billion in December 2025.
This represents a 20.86% reduction, translating to a decline of N11.90 billion during the first half of the year.
Ondo – N6.16 billion
Ondo’s domestic debt stock fell to N6.16 billion as of June 2026, from N8.42 billion at the end of December 2025.
The figure represents a 26.82% reduction, or N2.26 billion, during the first half of the year.
Most of the decline came in the second quarter, with a 15.78% drop between March and June taking its debt stock to N6.16 billion from N7.31 billion.
Jigawa – N1.04 billion
Jigawa recorded a domestic debt stock of N1.04 billion in June 2026, down from N1.60 billion in December 2025.
This represents a 34.71% reduction, equivalent to N555.41 million, during the first half of the year.
Enugu – N74.51 billion
Enugu recorded the largest reduction in domestic debt among the states during the first half of 2026, with its debt stock falling to N74.51 billion from N157.60 billion in December 2025.
This represents a 52.73% reduction, translating to a decline of N83.10 billion over the six-month period.
The second-quarter reduction of 37.93% was the largest quarterly decline among the four states.
How the reductions unfolded
The four states reduced their debt at different paces across the two quarters. Combined, their debt stock fell by N48.24 billion in Q1 2026 and by a further N49.56 billion in Q2 2026, showing that the pace of reduction picked up slightly in the second quarter.
- Enugu’s debt fell by N37.57 billion (23.84%) in Q1 2026, and further fell by N45.52 billion (37.93%) in Q2 2026.
- Jigawa’s debt remained unchanged (0.00%) in Q1 2026, before falling by N555.41 million (34.71%) in Q2 2026.
- Ondo’s debt fell by N1.10 billion (13.11%) in Q1 2026, and further fell by N1.15 billion (15.78%) in Q2 2026.
- Zamfara’s debt fell by N9.57 billion (16.77%) in Q1 2026, and further fell by N2.33 billion (4.91%) in Q2 2026.
The pace of reduction picked up in the second quarter, driven largely by Enugu, whose Q2 cut was N7.95 billion than its Q1 cut. Jigawa’s reduction came entirely in Q2, while Ondo reduced its debt at a steady pace in both quarters. Zamfara was the exception, with most of its reduction coming in Q1 before slowing in the second quarter.
Other states with notable debt reductions
Several other states also recorded reductions in their domestic debt stocks during the first half of 2026, although the declines were below the 20% threshold:
- Kwara: down 18.93%, from N62.99 billion to N51.06 billion.
- Ogun: down 16.89%, from N227.47 billion to N189.05 billion.
- Anambra: down 16.74%, from N11.55 billion to N9.62 billion.
- Ebonyi: down 15.55%, from N13.48 billion to N11.38 billion.
- Bayelsa: down 15.36%, from N51.38 billion to N43.49 billion.
More Insights
Enugu had the largest reduction in domestic debt of any state in both naira and percentage terms in the first half of 2026. The state’s N83.10 billion decline represented 84.96% of the combined N97.81 billion reduction recorded by the four states.
While 26 states recorded reductions between December 2025 and June 2026, 10 states and the FCT increased their debt stocks. The increases were particularly pronounced in Edo (135.72%), FCT (89.98%), Borno (70.52%), Adamawa (52.74%) and Delta (48.41%).
The reductions in Enugu, Jigawa, Ondo and Zamfara show that subnational debt positions can change significantly within a six-month period, with repayments and changes in borrowing affecting the debt stock of individual states.
