₦airaland Forum

The latest data from the Debt Management Office (DMO) shows that external debt for the states and the Federal Capital Territory climbed from $4.61 billion to $4.89 billion, reflecting a 6.14% increase between December 2023 and June 2024.

However, in naira terms, this figure surged by a staggering 73.46%, from N4.15 trillion to N7.2 trillion, following the devaluation of the naira from N899.39/$1 in December 2023 to N1,470.19/$1 by June 2024.

The DMO data highlights a growing reliance on external borrowing among Nigerian states, driven by the need to fund large-scale infrastructure projects and critical services.

While borrowing can spur development, it also raises concerns about debt sustainability, especially amid Nigeria’s broader fiscal challenges.

Below are the top 10 most indebted Nigerian states to foreign creditors as of June 30, 2024:

10. Katsina

Katsina saw a significant increase in foreign debt, surging by 125% from $50.31 million in December 2023 to $112.98 million by June 2024.

This growth of $62.67 million could be attributed to new borrowing to fund critical development projects in agriculture and rural infrastructure, which are pivotal to the predominantly agrarian economy of the state.

9. Kano

Kano, a key economic hub in northern Nigeria, reported a 14% rise in foreign debt, climbing from $107.92 million in December 2023 to $123.39 million in June 2024.

The $15.47 million increase may reflect Kano’s plan to expand industrial parks and improve trade infrastructure to boost its commercial activities.

8. Ekiti

Ekiti’s foreign debt rose by 13%, from $121.05 million to $136.64 million, representing an increase of $15.59 million. This surge is likely tied to the state’s ongoing efforts to enhance education and healthcare systems.

7. Ogun

Ogun’s foreign debt slightly decreased by 1% from $168.83 million in December 2023 to $166.64 million in June 2024, marking a reduction of $2.20 million.

This indicates improved debt management by the state, which is likely leveraging its position as an industrial hub to attract more internal revenue and reduce external borrowing.

6. Bauchi

Similarly, Bauchi recorded a 1% decline in its foreign debt, falling from $187.63 million to $185.28 million within the same period, a marginal reduction of $2.36 million.

Known for its agricultural potential, the state appears to be adopting conservative fiscal strategies to manage its borrowing levels.

5. Rivers

Rivers State posted the highest nominal increase in foreign debt, which rose by a staggering 152%, from $80.94 million in December 2023 to $203.81 million in June 2024.

The $122.86 million increase reflects the state’s significant reliance on foreign debt.

4. Cross River

Cross River’s foreign debt remained stable at $211 million over the six-month period. This unchanged figure reflects a cautious approach to borrowing as the state focuses on maintaining fiscal sustainability while pursuing key tourism and infrastructural projects.

3. Edo

Edo State witnessed a notable 21% increase in foreign debt, which rose from $314.45 million to $380.97 million, marking a $66.52 million jump.

This increase highlights Edo’s continued reliance on external debt to drive infrastructure development and economic growth.

2. Kaduna

Kaduna recorded a 9% increase in its foreign debt, climbing from $587.07 million to $640.99 million, a rise of $53.92 million.

1. Lagos

Lagos State, Nigeria’s commercial powerhouse, leads the pack with the highest foreign debt of $1.201 billion as of June 2024.

However, this represents a 3% decline from $1.244 billion in December 2023, marking a reduction of $42.80 million. Lagos’ massive foreign debt is reflective of its aggressive infrastructural investments, including road construction and public transportation systems.

The slight reduction could indicate strategic repayments to manage its debt profile.

Source: https://nairametrics.com/2024/11/14/top-10-nigerian-states-with-highest-external-debt-in-2024/

With Zero infrastructure

Especially Ogun...... No infrastructure, no good roads, nothing. Very bad

These ones dey owe foreign creditors. Where dem one see dollar to payback?
Even the useless states that generate more IGR than New York city and Dubai are in the list.

Yoooba people are addicted to borrowing.

Impressive, so far we are seeing what they use the loan for.

Debt

What is borrowed and what's on ground doesn't match

You borrowed 10million to build 4 blocks of classroom but what's on ground is not up to 2 blocks sef

Nigeria is gone already the politicians knows this that's why they are borrowing recklessly without plans to pay back

Anambra no dey there. Even Abia state

With all the noise about Sanwolu, so Lagos is number one on the list.
Lagos is overrated.

God bless south East...we buy and pay..we no dey owe

Interesting.

madridguy:
Impressive, so far we are seeing what they use the loan for.

To settle BMC urchins like yourself abi?

State Governors are rarely held accountable, which is why many have accumulated staggering debts without delivering tangible development. Most of them simply borrow money to pay salaries, leaving no meaningful projects to justify the loans. This lack of accountability is a glaring failure of leadership.

Sanwo oluuu don carry Lagos handicap...
Baba use our money bribe Mahmoud of inec

Great100000:
Source: https://nairametrics.com/2024/11/14/top-10-nigerian-states-with-highest-external-debt-in-2024/

what is/was Kaduna own used for. It was not stated?

MilesMaxwell:
Especially Ogun...... No infrastructure, no good roads, nothing. Very bad

Ogun is one SW State I love. I don't understand what their governors have been doing

madridguy:
Impressive, so far we are seeing what they use the loan for.

What exactly are you seeing??

Apart from Lagos, not one them has anything meaningful or tangible to show for this financial recklessness...!

Any state lacking economic boosting and revenue generating industries and infrastructures should be merged into others.

Trust Ogun State. Dapo Abiodun will never disappoint......lol

ogaemma:
With all the noise about Sanwolu, so Lagos is number one on the list.
Lagos is overrated.

Your people are polluting the place....

Blue line
Green line
Red line...
4th mainland bridge
Etc

Btruth:
Trust Ogun State.

1000 houses under construction....

Go n verify

Wow even the state with the highest igr

Sincerely speaking South East governors are prudent.

I give you guys 👍👍👍👍👍


Some region will sell their children in China to pay their debt very soon.


🤣🤣🤣🤣🤣🤣

You see all those IGR rubbish is nothing compared to gbese.


You are in Lagos earning 1.5 M but expenses gulp 1.3M every month ,now compare it with someone who earns 600k but monthly expenses is just 150k


Who is earning more

Lagos = capital of gbese

BlackfireX:
You see all those IGR rubbish is nothing compared to gbese.


You are in Lagos earning 1.5 M but expenses gulp 1.3M every month ,now compare it with someone who earns 600k but monthly expenses is just 150k


Who is earning more

Allow them to continue deceiving themselves.

They make so much IGR but building a modern toilets took them over 100 years.

🤣🤣🤣🤣🤣

Alliswell248:
Your people are polluting the place....

Blue line
Green line
Red line...
4th mainland bridge
Etc

None of those projects can break even not to talk about paying it's loan back

Who borrows to build things that would require money to maintain

IMO is not here? Thank Goodness

At least Hope had sense to borrow locally, paying back that 290 billion won't be that difficult

You see this foreign loans?

Naira is going to ₦2500 to a dollar next year... No miracle would stop it... 47.9 trillion budget on a 7 trillion revenue... Lmaooo

maxiuc:
Debt

What is borrowed and what's on ground doesn't match

You borrowed 10million to build 4 blocks of classroom but what's on ground is not up to 2 blocks sef

Nigeria is gone already the politicians knows this that's why they are borrowing recklessly without plans to pay back

Just imagine Edo being the third on that list of massive borrowers, yet nothing on ground to show for it.

Armaggedon:
Yoooba people are addicted to borrowing.

While your people are addicted to sorrowing

Your pain will continue to know no bounds