Lagos State has become the most indebted state in the country.
Data from the National Bureau of Statistics (NBS) shows that as of the fourth quarter (Q4) of 2025, Lagos owes N1.22 trillion in domestic debt and $1.17 billion in external debt.
In its Q4 2025 debt report released on Monday, April 27, the NBS noted that Nigeria’s total public debt—covering both domestic and external obligations—rose from N153.29 trillion ($103.94 billion) in Q3 2025 to N159.28 trillion ($110.97 billion) in Q4 2025, representing a 3.90% quarter-on-quarter increase.
The report indicated that total external debt stood at N74.43 trillion, while domestic debt reached N84.85 trillion during the period. External debt accounted for 46.73% of total public debt, while domestic debt made up 53.27%.
Among subnational governments, Lagos recorded the highest domestic debt at N1.22 trillion, followed by Rivers State with N378.81 billion. Jigawa State had the lowest domestic debt at N1.60 billion, followed by Ondo State with N8.42 billion.
Lagos also led in external debt with $1.17 billion, followed by Kaduna State at $684.29 million. The Federal Capital Territory recorded the lowest external debt at $26.80 million, followed by Zamfara State with $41.93 million.
Other states with significant debt burdens include Bauchi State, which owes $220.57 million externally and N156.05 billion domestically; Delta State, with $63.42 million in external debt and N248.83 billion domestically; and Enugu State, with $99.88 million in external debt and N157.60 billion domestically.
Rising debt levels remain a major concern, as servicing obligations continue to put pressure on government revenue. The World Bank recently warned that increasing debt service costs are limiting Nigeria’s ability to fund critical infrastructure, noting a decline in capital spending to 1.0% of GDP from 1.3% in 2024 due to debt servicing pressures.
Similarly, the International Debt Report 2025 highlighted the need for export diversification and fiscal reforms across Nigeria and other Sub-Saharan African countries, stressing that debt levels and servicing burdens are rising even as economic growth remains weak, pointing to ongoing fiscal strain.
