ABUJA – Lagos State, the Federal Capital Territory (FCT) and Rivers State accounted for more than 43 per cent of the ₦4.52 trillion domestic debt owed by Nigeria’s 36 states and the FCT as of March 31, 2026, according to the latest data released by the Debt Management Office (DMO).

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The DMO’s first-quarter 2026 domestic debt report showed that the three jurisdictions recorded a combined debt stock of ₦1.96 trillion, representing 43.27 per cent of the total domestic debt owed by sub-national governments. The figures also revealed a significant concentration of domestic debt among a handful of states, with Lagos State alone accounting for more than a quarter of the total debt stock.

According to the report, Lagos State remained the highest domestic debtor with ₦1.21 trillion, representing about 26.6 per cent of the total domestic debt. The Federal Capital Territory (FCT) followed with ₦389.88 billion, while Rivers State ranked third with ₦362.43 billion. Other states with high domestic debt include Delta State with ₦213.85 billion and Ogun State with ₦200.75 billion, making the five largest debtors responsible for a substantial share of the country’s sub-national domestic debt.

At the other end of the scale, Jigawa State recorded the lowest domestic debt at ₦1.60 billion, followed by Ondo State with ₦7.31 billion and Anambra State with ₦9.62 billion. Other states with relatively low debt levels include Ebonyi (₦12.30 billion), Katsina (₦12.69 billion) and Kebbi (₦14.58 billion), highlighting the wide disparity in borrowing levels among Nigeria’s states.

The DMO further disclosed that the combined domestic debt stock of the states and the FCT rose by ₦163.25 billion, representing an increase of about 3.7 per cent, between December 2025 and March 2026. The FCT recorded the sharpest increase, with its debt almost doubling from ₦188.86 billion in December 2025 to ₦389.88 billion in March 2026. Edo State also witnessed a significant rise, with its domestic debt increasing from ₦91.18 billion to ₦172.37 billion, while Borno State recorded an increase from ₦42.64 billion to ₦88.44 billion. Yobe State’s debt also climbed from ₦81 billion to ₦98.59 billion during the same period.

Despite the overall increase, some of the country’s biggest debtors reduced their domestic obligations. Lagos State’s debt declined slightly from ₦1.22 trillion in December 2025 to ₦1.21 trillion in March 2026. Rivers State’s debt fell from ₦378.81 billion to ₦362.43 billion, while Delta State reduced its debt from ₦248.83 billion to ₦213.85 billion. Ogun State also recorded a decline from ₦227.47 billion to ₦200.75 billion.

The DMO noted that the total domestic debt of the 36 states and the FCT stood at ₦4.36 trillion as of December 2025, compared to ₦4.52 trillion in the first quarter of 2026, underscoring continued reliance on domestic borrowing by sub-national governments to finance infrastructure, recurrent expenditure and development projects amid persistent fiscal pressures.