AfriPulse
May 04, (THEWILL) — External borrowing by Nigeria’s subnational governments surged in 2025, with 32 states and the Federal Capital Territory (FCT) collectively taking on nearly $1 billion in fresh loans, according to data from the Debt Management Office (DMO) analysed by Nairametrics.
The figures show that total external debt owed by states and the FCT rose from $4.80 billion as of December 31, 2024, to $5.68 billion by the end of 2025. This represents a year-on-year increase of $884.66 million, or 18.43 percent. The net rise was moderated by debt reductions in four states, which together cut $59.46 million from their obligations.
Overall, 33 of the 37 subnational entities recorded increases in their external debt, accounting for nearly 90 percent of states and the FCT. Multilateral loans continued to dominate the debt structure, rising to $5.25 billion and accounting for over 92 percent of total obligations, while bilateral loans stood at $430.96 million.
In terms of state-by-state increases, Katsina recorded the highest jump, nearly doubling its debt to $200.62 million. Niger, Kogi and Plateau also posted significant increases, with Plateau recording the fastest growth rate at 187.24 percent. Other notable risers included Kaduna, Gombe, Imo, Sokoto, Oyo and Bauchi.
Conversely, only Edo, Rivers, Anambra and Bayelsa reduced their external debt stocks during the period, with Edo and Rivers accounting for the bulk of the decline.
Despite the widespread borrowing, Lagos retained its position as the most indebted state externally, with $1.17 billion, followed by Kaduna and Edo.
The data also shows that states and the FCT now account for 12 percent of Nigeria’s total external debt stock of $51.81 billion, reflecting a gradual increase in subnational exposure to foreign loans.
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Source: TheWillNigeria | Read the Full Story…
