₦airaland Forum

Lagos State has emerged as the most indebted state in Nigeria. As at the fourth quarter (Q4) 2025, the state is said to be owing a total of N1.22 trillion and $1.17 billion as domestic and external debts respectively.

The National Bureau of Statistics (NBS) which announced this on Monday in its Nigeria’s Q4 2025 domestic and external debt report, 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.

obonujoker:
I don't understand.

I thought PBAT has increases allocations to state governors , so why is Lagos still owing while some reducing?

And what is Lagos doing with all these money?

Flangelo12:
Not a big deal for Lagos.

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coputa:
https://guardian.ng/business-services/business/lagos-leads-as-most-indebted-state-in-nigeria-owes-n1-22trn-1-17b/

DesChyko:
Some people will say "It is not a bad thing to be in debt." Such a Nigerian thing to say, without considering the repayment capacity.

Ofemannnu:
Don't mind the article.
I thought it will be #10 trillion or $5 billion.
This tiny amount is what Lagos can clear in a day..

Kaetoh:
Lagos has no business being in debt as a a state that generates several billions on naira monthly not to talk FAC allocation. This is why I never rate any governor of that state and each and every one of them is a colossal fraud and disaster waiting to befall Nigeria. I mean look at Tinubu , look at fashola , look at sanwo olu , these guys are pure failures if you compare everything they get to every thing they give back . States that gets 10 times less than what Lagos gets are seen doing 10 times more than what Lagos does . Nigerians should open their eyes to see the monumental corruption going on in that state and other south west states. And some of our counterparts in the south west will tell you how Tinubu is better than Peter Obi . Anambra gets meager allocation compared to Lagos yet the performance of Peter Obi as governor dwarfs whatever you see in Lagos state. God willing there will be more exposition to this discussion with time .

Flangelo12:
Not a big deal for Lagos.

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asfrank:
Ignorant Obidient see it as a bad thing. the dull man leading the band wagon thinks the same, so I don't expect the followers to have a different mindset.
While in their closet they pray their state excels like Lagos.
Lagos is solvent enough borrow, And that's the main point. Most state wish to have access to such loans, but they can't really. .

pigmania:
Then let them simply clear the tiny amount and be tagged 'debt free'.

Ofemannnu:
Have you seen any serious,developed or developing nation in the world that is debt free?
USA and China are the most indebted nations in the world.He get why.

Kaetoh:
Lagos has no business being in debt as a a state that generates several billions on naira monthly not to talk FAC allocation. This is why I never rate any governor of that state and each and every one of them is a colossal fraud and disaster waiting to befall Nigeria. I mean look at Tinubu , look at fashola , look at sanwo olu , these guys are pure failures if you compare everything they get to every thing they give back . States that gets 10 times less than what Lagos gets are seen doing 10 times more than what Lagos does . Nigerians should open their eyes to see the monumental corruption going on in that state and other south west states. And some of our counterparts in the south west will tell you how Tinubu is better than Peter Obi . Anambra gets meager allocation compared to Lagos yet the performance of Peter Obi as governor dwarfs whatever you see in Lagos state. God willing there will be more exposition to this discussion with time .

Sunsen:
You can't compare the development in Lagos to others na.... And you know this