Nigeria's subnational domestic debt has risen to N4.59 trillion.
Data from the Debt Management Office, DMO, analysed by Researchers, shows that the domestic debt stock of the 36 states and the Federal Capital Territory stood at N4.59 trillion as of June 2026, up from N4.52 trillion in March 2026.
The figure represents an increase of N67.57 billion or 1.49 per cent quarter-on-quarter. The pace of growth slowed compared to the 3.74 per cent jump recorded between December 2025 and March 2026.
Year-on-year, the debt stock grew by 15.83 per cent from N3.96 trillion in June 2025, an addition of N627.35 billion.
A concentration of borrowing remains evident. The 10 most indebted states, including the FCT, held a combined N3.22 trillion as of June 2026, accounting for more than 70 per cent of the total subnational domestic debt.
The debt of the top 10 rose by 4.44 per cent from N3.08 trillion in March 2026 and by 29.35 per cent from N2.49 trillion in June 2025. While total state debt increased by N627.35 billion year-on-year, the top 10 alone accounted for N731.05 billion of that rise. Debt outside the top 10 fell by about N103.69 billion over the same period.
Lagos remains top debtor
Lagos State retained its position as the most indebted state with N1.20 trillion in domestic debt.
The state accounted for 26.03 per cent of the country's total subnational domestic debt and 37.10 per cent of the debt held by the top 10.
Its debt declined marginally by 0.81 per cent from N1.21 trillion in the first quarter of 2026, but it is still 14.78 per cent higher than the N1.04 trillion recorded in June 2025, representing an increase of N153.93 billion in 12 months. The rise is linked to continued capital spending on roads, rail transportation, urban renewal and water infrastructure.
Delta, FCT record sharp annual surge
Delta State moved to second place with N369.30 billion, up from fourth in the previous quarter. The amount represents 8.04 per cent of total subnational debt and 11.46 per cent of the top 10 total.
Delta's debt stock rose by 72.69 per cent from N213.85 billion in March 2026 and by 80.44 per cent from N204.67 billion in June 2025, an addition of about N164.64 billion over one year.
The Federal Capital Territory, FCT, ranked third with N358.79 billion, down from second place in March 2026. Its debt fell by 7.97 per cent quarter-on-quarter from N389.88 billion, but surged by 405.06 per cent year-on-year, the largest annual increase among the top debtors. The increase translates to about N287.75 billion and is attributed to financing for infrastructure expansion, transportation projects and urban development in the capital. The FCT accounted for 7.81 per cent of total debt and 11.14 per cent of the top 10 debt stock.
Rivers State dropped to fourth with N354.64 billion, representing 7.72 per cent of total debt. Its debt fell by 2.15 per cent from N362.43 billion in March 2026 and by 2.68 per cent from N364.39 billion in June 2025, making it one of the few states in the top 10 to record declines over both periods. Rivers has now been overtaken by Delta and the FCT.
Edo State climbed to fifth with N214.93 billion, or 4.68 per cent of total debt. The state posted a 24.69 per cent quarterly increase from N172.37 billion in March 2026 and a 167.60 per cent yearly rise from N80.32 billion in June 2025, an increase of about N134.61 billion.
Others show mixed trends
Ogun State ranked sixth with N189.05 billion, down 5.83 per cent from N200.75 billion in the first quarter. The figure is 16.04 per cent higher than the N162.92 billion recorded in June 2025. It accounted for 4.12 per cent of total debt. The quarterly decline reflects repayments and reduced new borrowing.
Bauchi State was seventh with N157.35 billion, up 1.88 per cent from N154.45 billion in March 2026 and 9.56 per cent from N143.62 billion a year earlier. It contributed 3.43 per cent of total debt and 4.88 per cent of the top 10 total.
Niger State placed eighth with N140.00 billion, representing 3.05 per cent of total debt. The stock fell marginally by 0.49 per cent from N140.69 billion in March and by 1.08 per cent from N141.52 billion in June 2025, retaining the same position as in the previous quarter.
Cross River State ranked ninth with N130.01 billion, down 1.73 per cent from N132.30 billion in March and 11.73 per cent from N147.28 billion in June 2025, a reduction of N17.27 billion year-on-year. The decline reflects ongoing repayments and limited new borrowing.
Benue State completed the top 10 with N112.32 billion, down 0.48 per cent from N112.85 billion in March, improving from 11th position in the previous quarter. Year-on-year, its debt fell by 15.88 per cent from N133.53 billion, a reduction of N21.21 billion, the largest yearly decline among the top 10. Benue accounted for 2.45 per cent of total debt and 3.49 per cent of the top 10 total.
The data points to contrasting fiscal approaches, with Delta, Edo and the FCT recording strong borrowing to fund capital projects, while Rivers, Cross River, Benue, Ogun and Niger moderated their exposure.
.jpeg)
0 Comments