Nigeria's Subnational Debt Reaches N4.6 Trillion in 2026

As of the end of June 2026, Nigeria's subnational domestic debt stood at approximately N4.6 trillion, which constitutes about five per cent of the total domestic debt stock of N91.6 trillion, including the Federal Government and the Federal Capital Territory (FCT). Lagos, Delta, the FCT, Rivers, and Edo account for around 54 per cent of this subnational debt.

Notably, Lagos represents 26 per cent of the total subnational debt but benefits from a robust internally generated revenue base, which enhances its ability to meet financial obligations and decreases its reliance on federal allocations. Analysts from Proshare indicate that the financial outlook for states will hinge on their capacity to increase internally generated revenue, manage recurrent expenditures, and control borrowing costs.

The Debt Management Office's latest data reveals that the combined domestic debt of the 36 state governments and the FCT translates to approximately 0.9 per cent of the FY 2026 GDP forecast, suggesting that while the aggregate debt is modest, sustainability varies significantly across states due to differences in revenue sources.