A new report from the National Bureau of Statistics (NBS) has shown that Lagos State remains Nigeria’s most indebted subnational government, with a combined domestic and external debt profile of ₦1.22 trillion and $1.17 billion as of the fourth quarter of 2025.
The data, contained in the NBS Q4 2025 domestic and external debt report, revealed that Nigeria’s total public debt rose from ₦153.29 trillion ($103.94 billion) in Q3 2025 to ₦159.28 trillion ($110.97 billion) in Q4 2025, representing a 3.9 percent increase quarter-on-quarter.
Of the total national debt stock, external obligations stood at ₦74.43 trillion, while domestic debt accounted for ₦84.85 trillion. In percentage terms, external debt represented 46.73 percent of the total, while domestic debt made up 53.27 percent.
Among all states, Lagos State recorded the highest domestic debt at ₦1.22 trillion, followed by Rivers State with ₦378.81 billion. At the lower end, Jigawa State had the least domestic debt at ₦1.60 billion, while Ondo State followed with ₦8.42 billion.
In terms of external borrowings, Lagos again led with $1.17 billion, trailed by Kaduna State with $684.29 million. The Federal Capital Territory (FCT) recorded the lowest external debt at $26.80 million, followed by Zamfara State with $41.93 million.
Other states with significant debt profiles include Bauchi State, which owes $220.57 million externally and ₦156.05 billion domestically; Delta State with $63.42 million and ₦248.83 billion; and Enugu State with $99.88 million and ₦157.60 billion in external and domestic debts respectively.
The growing debt burden across the federation has continued to raise concern among analysts and policymakers, especially as debt servicing consumes a larger share of government revenue, limiting funds available for infrastructure and development projects.
The World Bank has previously warned that rising debt servicing obligations are constraining Nigeria’s fiscal space, noting a decline in capital expenditure to about 1.0 percent of GDP in 2025 from 1.3 percent in 2024.
In its International Debt Report 2025, the bank also advised Nigeria and other Sub-Saharan African countries to pursue fiscal reforms and diversify exports to manage rising debt levels and ease repayment pressures.
Overall, the report highlights persistent fiscal strain across both federal and state governments, despite ongoing efforts to stabilize public finances.
READ ALSO:
- Hamzat’s 2027 Governorship Bid: Rufai Oseni Says Tinubu’s Blessing Remains the Real Prize
- Nigerian Air Force Bombs Terrorist Bases in Mandara Mountains
- Anthony Joshua Set For Ring Return After Car Crash
- Lagos Tops Nigeria’s Debt Chart with ₦1.22 Trillion and $1.17 Billion Borrowings – NBS Report
- Presidency Launches Nationwide Project Tour to Showcase Tinubu’s Infrastructure, Economic Gains
