Nigeria's Subnational Debt Reaches N4.36 Trillion in 2025

As of 2025, Nigeria's subnational debt has escalated to N4.36 trillion, with Lagos State leading at N1.04 trillion, according to the latest data from the Debt Management Office (DMO). This represents a rise from N3.97 trillion in 2024, marking a year-on-year increase of 9.89%, which translates to an additional N392.41 billion in borrowing.

The data indicates a significant concentration of debt among a few large states, with the top ten states accounting for the majority of the total obligations. This trend underscores a widening fiscal imbalance at the state level.

Notably, Benue State has managed to reduce its debt stock, recording a decline of 12.52%, bringing its total debt down to N107.23 billion, which is 2.46% of the total debt of N122.58 billion in 2024. This reduction suggests active debt repayment efforts and a potential shift away from new borrowing, raising questions about fiscal consolidation and its impact on capital investment.