Daud Olatunji
Lagos, the Federal Capital Territory and Rivers State accounted for about 43 per cent of the N4.52tn domestic debt owed by Nigeria’s 36 states and the FCT as of March 2026, according to data released by the Debt Management Office.
The latest figures contained in the DMO’s Domestic Debt Data Report showed that the domestic debt stock of the states and FCT rose to N4.523tn at the end of the first quarter of 2026, up from N4.360tn recorded in December 2025.
The increase represents a 3.61 per cent rise in three months, indicating a continued expansion in subnational borrowing.
Lagos alone accounted for more than a quarter of the total debt, retaining its position as the most indebted state with N1.2tn, representing 26.64 per cent of the aggregate domestic debt.
Although Lagos remained the largest borrower, its debt stock declined slightly by 1.18 per cent from N1.219tn recorded at the end of December 2025.
The FCT recorded the sharpest increase among the three leading debtors, with its domestic debt rising to N389bn from N188bn in December 2025.
The increase represents a staggering 106.43 per cent rise within the quarter.
Rivers, however, recorded a decline in its domestic debt stock, dropping from N378bn in December 2025 to N362.4bn as of March 2026.
The figure represents an 8.01 per cent share of the total debt and a 4.32 per cent quarterly decline.
Combined, Lagos, the FCT and Rivers owed about N1.96tn, accounting for roughly 43.3 per cent of the N4.523tn total domestic debt.
The remaining 33 states accounted for about 56.7 per cent of the debt stock.
After the three leading debtors, Delta State ranked fourth with N213bn, while Ogun State followed with N200bn.
At the other end of the table, Jigawa State recorded the lowest domestic debt at N1.6bn.
Ondo followed with N7.31bn, while Anambra recorded N9.62bn. Katsina and Ebonyi each had N12bn in domestic debt.
The figures highlight significant differences in the borrowing positions of states, with some subnational governments increasing their exposure to domestic borrowing while others reduced their debt stock during the quarter.
The DMO report comes amid growing scrutiny of borrowing by state governments and the need to ensure that debt contracted at the subnational level is channelled into productive investments capable of improving infrastructure and generating economic returns.
The latest data also show that the aggregate domestic debt position of states and the FCT continued its upward trajectory in the first quarter of 2026, despite debt reductions recorded by some states, including Rivers.
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