State domestic debt in Nigeria reached ₦4.59 trillion at the end of June 2026. The total covers all 36 states and the Federal Capital Territory. About 70 per cent was concentrated among just ten governments.
Debt Management Office figures show that the total rose from ₦4.52 trillion at the end of March. That is an increase of ₦67.57 billion, or 1.49 per cent. Over the year to June, the total grew by ₦627.35 billion, or 15.83 per cent.
The quarterly increase looks modest overall, but states followed different borrowing patterns. Several reduced their debts. Meanwhile, Delta, Edo and the FCT recorded some of the largest changes over the previous year.
Where state domestic debt is concentrated
Lagos remained Nigeria’s biggest sub-national domestic debtor, with liabilities of ₦1.195 trillion. That was about 26 per cent of the total owed by all states and the FCT.
Lagos’s debt fell slightly from about ₦1.21 trillion in March. However, it remained 14.78 per cent above its June 2025 total of ₦1.041 trillion. Lagos has greater capacity to raise revenue than many states. Even so, its large debts make careful management and sound project returns important.
Delta moved into second place as its debt rose from ₦213.85 billion in March to ₦369.30 billion in June. That increase of about 72.69 per cent was among the sharpest in the quarter. Its debt was also 80.44 per cent above the ₦204.67 billion recorded a year earlier.
The FCT ranked third with ₦358.79 billion. This was 7.97 per cent below its March total. However, it was more than four times the ₦71.04 billion recorded in June 2025.
Rivers followed with ₦354.64 billion, down from ₦362.43 billion in March and also below its year-earlier level. Edo’s domestic debt, by contrast, rose by 24.69 per cent during the quarter to ₦214.93 billion. It was 167.6 per cent higher than the ₦80.32 billion reported in June 2025.
Ogun’s debt fell by 5.83 per cent in the quarter to ₦189.05 billion. It was still about 16 per cent above its June 2025 level. Bauchi owed ₦157.35 billion, Niger ₦140 billion, Cross River ₦130.01 billion and Benue ₦112.32 billion.
Together, the ten largest debtors owed approximately ₦3.22 trillion, or 70.2 per cent of the sub-national domestic total. Their combined liabilities increased by about ₦731 billion over the 12 months to June.
How borrowing affects public services
Borrowing is not always harmful. States can use loans to build roads, schools, hospitals, power infrastructure and water systems. These projects can deliver benefits for many years. Borrowing can therefore spread their cost across the generations that use them.
Risks arise when loans pay for routine spending, poorly chosen projects or programmes that deliver too little value. Repayments can then absorb funds needed for wages and essential services. States that rely heavily on monthly Federation Account allocations may face particular pressure.
Residents need more than headline debt totals. They should know why each loan was obtained, its interest rate and repayment date. They also need details of the projects financed and the burden on future budgets.
Debt totals should be assessed alongside each state’s revenue, statutory allocations and spending. A large debt may be manageable where income is strong and reliable. By contrast, a smaller loan can put pressure on a state with weak revenues.
Domestic debt faces less direct exchange-rate risk than foreign loans. However, high interest costs and short repayment periods can still strain finances. Growing debt can also leave states with less money for emergencies or new projects.
What residents should ask their governments
The DMO tables allow citizens, lawmakers and investors to compare states. Individual governments must then explain their borrowing. State assemblies should examine loan requests and repayment plans. Auditors should also check whether funds reached the approved projects.
Governors should explain sharp debt increases and identify what the loans financed. Governments whose debts fell should explain those changes too. Repayments, changes to loan terms and accounting movements can each affect the figures.
For ordinary Nigerians, the test is ultimately practical. Borrowing should translate into better transport, reliable public services, productive investment and broader economic opportunity. Higher liabilities without visible results leave taxpayers with repayment obligations but little lasting benefit.
Podium News will monitor further DMO releases and budget reports from states with the largest increases. Readers can also check the DMO’s state domestic debt tables alongside their state budgets. This helps them assess what borrowing pays for.
