Lagos State has emerged as the most indebted state in Nigeria.
According to the National Bureau of Statistics (NBS), as at the fourth quarter (Q4) 2025, Lagos state is owing a total of N1.22 trillion and $1.17 billion as domestic and external debts respectively.
Making the announcement on Monday, April 27, in its Q4 2025 domestic and external debt report, NBS said the country’s total debt stock, comprising domestic and external debt, during the quarter rose from N153.29 trillion or $103.94 billion in Q3 2025 to N159.28 trillion ($110.97 billion) in Q4 2025.
The report said this is an increase of 3.90 per cent on a quarter-on-quarter basis.
According to the report, total external debt stood at N74.43 trillion, while total domestic debt was N84.85 trillion in Q4 2025.
The share of external debt (in naira value) to total public debt was 46.73 per cent in Q4 2025, while the share of domestic debt (in naira value) to total public debt stood at 53.27 per cent.
Among the subnationals, Lagos state recorded the highest domestic debt in Q4 2025 with N1.22 trillion, followed by Rivers with N378.81 billion, while Jigawa state recorded the lowest with N1.60 billion, followed by Ondo with N8.42 billion.
Lagos State also recorded the highest external debt over the reference period with $1.17 billion, followed by Kaduna with $684.29 million, while FCT had the lowest with $26.80 million, followed by Zamfara with $41.93 million.
Other heavily indebted states are Bauchi with $220.57 million and N156.05 billion as external and domestic debts respectively; Delta with $63.42 million and N248.83 billion as external and domestic debt respectively, and Enugu with $99.88 million and N157.60 billion as external and domestic debts.
The issue of the rising debt burden has been a course for concern for Nigerians as the debt service obligation is putting high pressure on the country’s revenue.
Early this month, the World Bank warned that the country’s rising debt service costs are reducing its ability to fund critical infrastructure. It noted specifically the sharp drop in capital spending to 1.0 per cent of GDP from 1.3 per cent in 2024 because debt servicing is crowding out investment.
The International Debt Report 2025 noted that Nigeria and other Sub-Saharan African countries must initiate what it call export diversification and fiscal reforms to address their rising debt challenges. It noted that debt levels and servicing burdens continued to rise even as growth remains subdued, underscoring persistent fiscal stress.