Lagos State Leads Nigeria in Subnational Debt Crisis

As of September 30, 2025, Nigeria's total public debt stock reached N153.29 trillion, with subnational debts accounting for N4.002 trillion. Ten states, including Lagos, owe N2.68 trillion, representing 67% of the total subnational debt.

Lagos State tops the list with a debt profile of N1.045 trillion, approximately 26% of the total subnational debt. Other states with significant debts include Rivers State at N381.205 billion, Delta State at N247.171 billion, and Enugu State at N194.715 billion.

Analysts express concerns regarding the sustainability of these debts, particularly given the reliance on federal allocations and the impact of exchange rate volatility and rising interest costs. The uneven distribution of liabilities among states raises questions about fiscal stress in specific regions, highlighting the need for careful management of debt obligations to support long-term infrastructure growth.