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Three States Hold 43% of Nigeria’s Domestic Debt – DMO

The Debt Management Office (DMO) says Lagos, the Federal Capital Territory (FCT), and Rivers State collectively account for more than 43% of the country’s N4.52 trillion subnational debt as of March 31, 2026.

“Combined, the three states had a domestic debt of N1.96 trillion, representing 43.27% of the total,” the DMO disclosed in its first-quarter 2026 report.

Lagos alone remains the largest debtor, with N1.21 trillion—over a quarter of the total. The FCT followed with N389.88 billion, while Rivers recorded N362.43 billion.

Delta and Ogun rounded out the top five with N213.85 billion and N200.75 billion respectively.

At the other end of the spectrum, Jigawa posted the lowest debt stock at N1.60 billion. Ondo and Anambra followed with N7.31 billion and N9.62 billion respectively.

Several states, including Ebonyi, Katsina, and Kebbi, reported debt levels below N20 billion.

The DMO noted that the overall debt stock rose by N163.25 billion, or 3.7%, between December 2025 and March 2026.

“The FCT recorded the largest increase, rising from N188.86 billion in December to N389.88 billion in March,” the report stated.

Edo, Borno, and Yobe also saw significant jumps.

Interestingly, some of the biggest debtors recorded declines. Lagos’ debt fell slightly from N1.22 trillion to N1.21 trillion, while Rivers dropped from N378.81 billion to N362.43 billion. Delta and Ogun also reduced their obligations during the same period.

The figures underscore the fiscal imbalance among Nigeria’s states. While Lagos continues to generate substantial revenue—N1.67 trillion in the first half of 2026—the state also shoulders the largest debt burden.