Nigeria's States' External Debt Rises by Nearly $1 Billion

As of December 2025, the external debt of 32 Nigerian states and the Federal Capital Territory (FCT) increased by $944.12 million, according to the Debt Management Office (DMO). This rise represents a net increase of $884.66 million year-on-year.

Notably, Katsina recorded the largest increase in external debt, rising by $100.16 million, while Gombe's debt rose by $55.67 million. Other states with significant increases include Imo, Sokoto, and Oyo.

Conversely, four states (Edo, River, Anambra, and Bayelsa) saw a combined reduction in external debt of $59.46 million, partially offsetting the overall increase. By the end of 2025, the total external debt stock for these subnational entities reached $4.80 billion, with $4.50 billion attributed to multilateral loans.

The DMO's report indicates that the states and FCT accounted for 51.81 billion of Nigeria's total external debt stock.