Despite generating the highest internally generated revenue in Nigeria, Lagos State continues to lead the country in domestic debt, with its burden standing at a staggering ₦874 billion as of the first quarter of 2025.
According to public debt data released by the Debt Management Office (DMO), Lagos State’s domestic debt level, although slightly reduced from ₦1.048 trillion in Q4 2023, remains significantly higher than that of every other state.
The state’s current debt accounts for nearly a quarter of the combined debt of all 36 states and the Federal Capital Territory (FCT), which stood at ₦3.87 trillion as of March 2025.
This raises fresh concerns about Lagos’s fiscal responsibility, especially under Governor Babajide Sanwo-Olu, who has now overseen two terms marked by a ballooning debt profile.
By contrast, Jigawa State, under Governor Umar Namadi, reduced its domestic debt from ₦42.7 billion in Q4 2023 to ₦1.06 billion by Q1 2025. The drastic drop earned the state the lowest debt ranking in the nation. Other low-debt states include Ondo (₦11.7 billion), Kebbi (₦15 billion), and Ebonyi (₦17.1 billion).
Meanwhile, states like Rivers (₦364.3 billion), Delta (₦204.7 billion), and Ogun (₦190.1 billion) followed Lagos at the high end of the debt chart.
The overall trend shows that while most states experienced a decrease in their domestic debt stock, some significantly, others, such as Rivers and Enugu, witnessed an increase. For instance, Enugu State’s debt rose from ₦92.2 billion in Q4 2023 to ₦188.4 billion in Q1 2025 under Governor Peter Mbah.
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