Lagos State has emerged as the most indebted state in Nigeria, with total obligations of 1.22 trillion naira in domestic debt and 1.17 billion dollars in external debt as of the fourth quarter of 2025. The figures were released by the National Bureau of Statistics in its latest report on the country’s debt profile.
According to the report, Nigeria’s total public debt rose to 159.28 trillion naira in the fourth quarter of 2025, up from 153.29 trillion naira recorded in the previous quarter. The increase represents a 3.9 percent rise, with external debt accounting for 74.43 trillion naira and domestic debt standing at 84.85 trillion naira.
Among the states, Lagos recorded the highest domestic debt, followed by Rivers State, while Jigawa and Ondo states posted the lowest figures. In terms of external debt, Lagos again ranked highest, followed by Kaduna, while the Federal Capital Territory and Zamfara recorded the lowest. Other states with significant debt burdens include Bauchi, Delta and Enugu, reflecting a broader pattern of rising subnational liabilities.
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The growing debt burden has raised concerns among analysts and international institutions, including the World Bank, which recently warned that increasing debt service costs are limiting Nigeria’s ability to invest in infrastructure. The report highlights mounting fiscal pressure and calls for reforms, including export diversification and improved revenue generation, to address the country’s rising debt challenges.
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