Lagos, Rivers, and Delta states collectively account for 38 per cent of the total domestic debt stock of Nigerian states and the Federal Capital Territory.
According to the latest subnational report by the Debt Management Office, the domestic debt of the 36 states and the FCT stood at N4.21tn as of September 30, 2024, reflecting a marginal decrease from N4.27tn recorded on June 30, 2024.
This represents a quarter-on-quarter decline of 1.27 per cent or N54.37bn.
Lagos State retained its position as the highest debtor with a domestic debt stock of N853.43bn.
This figure represents over 20 per cent of the total subnational domestic debt, highlighting Lagos’ status as the nation’s economic hub and its significant infrastructure funding requirements.
However, Lagos saw a decline of N32.56bn (3.67 per cent) in its domestic debt stock compared to the N885.99bn recorded in June 2024, reflecting efforts to reduce borrowing or repay obligations.
Delta State followed as the second-highest debtor with a debt stock of N342.53bn, recording an increase of N37.99bn (12.47 per cent) from its June 2024 figure of N304.54bn.
This increase highlights growing fiscal pressures in the oil-rich state. Rivers State ranked third with a debt stock of N389.20bn, contributing over 9 per cent to the total debt.
However, the DMO clarified that the domestic debt figure for Rivers remained unchanged between June and September 2024, as the data for Rivers was only updated up to June 30, 2024.
Other states with significant debt figures include Akwa Ibom, which recorded N126.00bn as of September 2024, a decline of N6.87bn (5.17 per cent) from June 2024, and Cross River, which saw one of the largest reductions, shedding N22.08bn (14.20 per cent) to settle at N133.41bn.
At the lower end of the spectrum, Jigawa State retained its position as the state with the lowest domestic debt stock, recording N1.26bn in September 2024.
This represents a significant reduction of N552m (30.38 per cent) from its June figure of N1.82bn, demonstrating Jigawa’s commitment to keeping borrowing at minimal levels.
Kebbi State, with a debt stock of N15.34bn, followed closely, shedding N118m (0.76 per cent) compared to its June figure of N15.46bn.
Nasarawa State, one of the lowest debtors, recorded a debt stock of N25.16bn in September, up by N1.21bn (5.07 per cent) from N23.94bn in June.
Kaduna and Ondo states also maintained low debt profiles with figures of N26.61bn and N13.99bn, respectively, as of September 2024.
Kaduna saw a decline of N1.98bn (6.93 per cent) from its June figure of N28.60bn, while Ondo recorded a reduction of N1.11bn (7.35 per cent) from its June figure of N15.10bn.
These reductions reflect cautious fiscal management by the respective governments.
While some states reduced their domestic debt levels, others experienced significant changes that raised questions about fiscal sustainability.
For instance, Delta recorded the highest increase in absolute terms among the top debtors, adding N37.99bn to its debt stock during the quarter.
Adamawa State’s domestic debt rose by 19.08 per cent (N19.65bn) from N102.99bn in June to N122.63bn in September.
Enugu State followed closely, with its debt stock surging by N31.10bn (32.07 per cent) from N96.98bn in June to N128.07bn in September.
These increases highlight additional fiscal pressures and borrowing needs in these states.
In contrast, Lagos, despite being the top debtor, reduced its debt stock by N32.56bn.
The PUNCH earlier reported that Nigeria’s total public debt rose to N142.3 trillion as of September 30, 2024, representing an increase of 5.97 per cent (N8.02tn) compared to N134.3tn in June 2024.
