Here are the verified details on Nigeria’s most indebted states as of September 2025 based on the latest subnational borrowing data from the Debt Management Office (DMO) as reported by multiple credible outlets.
Latest figures show the combined domestic debt of Nigeria’s 36 states and the Federal Capital Territory (FCT) stood at roughly ₦4.00 trillion by the end of September 2025, a marginal increase from earlier in the year as fresh borrowings slightly outpaced repayments.
Subnational debt remains heavily concentrated in a small group of states, with just five states responsible for nearly half of the total subnational debt stock.
Nairametrics Lagos State remains the most indebted subnational government by a significant margin, accounting for more than a quarter of the total debt. Its domestic debt stock stood at about ₦1.046 trillion, reflecting sustained borrowing to finance infrastructure, urban services, transport projects, and other capital-intensive programmes.
Being Nigeria’s commercial hub with the largest economy and population, Lagos carries the highest debt load in both absolute terms and share of the total subnational debt portfolio.
Rivers State ranks second among the most indebted, with domestic liabilities of approximately ₦381.21 billion. Followed by Delta State whose debt stock was around ₦247.17 billion, reflecting sizeable fiscal demands in one of Nigeria’s major oil-producing regions.
Enugu State was next with roughly ₦194.72 billion in domestic borrowings, while Ogun State held debt of about ₦168.09 billion at the end of the period.
Together, these five states (Lagos, Rivers, Delta, Enugu, and Ogun) accounted for an estimated ₦2.04 trillion of the total ₦4.00 trillion subnational debt, underscoring the concentration of liabilities in a handful of states.
Beyond the top five, the broader ranking of indebted states as of September 2025 also included:Bauchi State: ~₦158.20 billionNiger State: ~₦143.50 billionCross River State: ~₦141.94 billionBenue State: ~₦107.25 billionAkwa Ibom State: ~₦95.51 billionThese lower-tier positions reflect both smaller economies and, in some cases, active debt reduction efforts by state governments.
Notably, Akwa Ibom’s debt stock declined year-on-year as the state either slowed new borrowings or accelerated repayments.
The concentration of subnational debt highlights fiscal pressures on state governments to fund infrastructure and public services amid constrained revenue flows.
Analysts tracking the DMO data note that while some states have increased borrowing even as federal allocations improved, others have successfully reduced their debt exposure, creating a divergent fiscal picture across the federation.
According to the latest Debt Management Office data as of September 2025, the most indebted Nigerian states are:
1. Lagos State
2. Rivers State
3. Delta State
4. Enugu State
5. Ogun State
6. Bauchi State
7. Niger State
8. Cross River State
9. Benue State
10. Akwa Ibom State
Source : Nairametrics
