These figures are not cooked up for political propaganda. They are based on official data published by Nigeria’s Debt Management Office (DMO), covering the debt profile of the 36 states and the Federal Capital Territory as of December 31, 2025. The DMO published the relevant domestic and external debt data in April 2026.
The figures present an interesting picture of Nigeria’s sub-national finances—and they raise some serious political and economic questions.
Nigeria’s 10 Most Indebted States
According to the figures provided, the states with the highest total debt positions are:
1. Lagos — ₦2.91 trillion
2. Kaduna — ₦1.07 trillion
3. Rivers — ₦624.09 billion
4. Edo — ₦599.30 billion
5. Ogun — ₦538.92 billion
6. Bauchi — ₦472.62 billion
7. Cross River — ₦457.31 billion
8. Niger — ₦344.45 billion
9. Delta — ₦339.86 billion
10. Katsina — ₦302.05 billion
At the other end of the table, Jigawa records the lowest debt position, at about ₦67.22 billion.
One figure immediately stands out: Lagos’ debt is almost three times that of Kaduna, the second-highest state on the list.
But there is an important caveat. A high debt figure does not automatically mean a state has been poorly managed. Borrowing can be justified when it finances productive infrastructure, expands economic activity, creates jobs or generates enough future revenue to service the debt. The real questions are what the money was borrowed for, how effectively it was spent, the cost of servicing it and whether citizens are receiving measurable value from the borrowing.
The Political Question
What makes the figures particularly interesting is the political composition of the top 10.
Several of the states on the list are governed by the All Progressives Congress (APC), including Lagos, Kaduna, Edo, Ogun, Cross River, Niger and Katsina. That means APC-controlled states feature prominently among Nigeria’s most indebted states.
And then there is the Niger Delta angle.
Rivers is third, Edo fourth and Delta ninth among the states listed. That is particularly noteworthy because oil-producing states receive derivation revenue in addition to their statutory allocations.
This inevitably raises questions about the relationship between revenue inflows, borrowing and development outcomes.
Edo State Raises the Biggest Question
For me, Edo State’s position as the fourth-most indebted state is particularly striking, with a reported debt of approximately ₦599.30 billion.
The question therefore deserves to be asked: Is Governor Monday Okpebholo aware of the state’s position on the DMO debt table, and what is the administration’s strategy for managing this debt burden?
Governor Okpebholo signed Edo’s ₦939 billion 2026 budget into law in December 2025, with the administration presenting infrastructure, agriculture and other development priorities as key areas of spending.
The issue is not simply that Edo owes money. The bigger question is what Edo has received in return for that borrowing and whether the state’s revenue capacity is strong enough to sustainably service its obligations.
The same question should apply to every state on this list, regardless of political party.
Debt itself is not necessarily the problem. Unproductive debt, weak accountability and borrowing without commensurate development are the real concerns.
So, what do you make of these figures?
Are these debts evidence of aggressive development financing—or evidence that Nigerian states are borrowing far beyond what their economies can comfortably support?
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