Top 10 Nigerian States with the Highest Debt as of Q1 2025

Nigeria’s public debt has been growing in recent years, and it is not just the federal government that is affected. Many states in Nigeria are also facing increasing debts, which are a major concern for their economies. 

According to the latest data released by Debt Management Office (DMO), as of the first quarter of 2025, Nigeria’s total public debt reached ₦149.39 trillion. Of this amount, ₦3.87 trillion is the total debt of all 36 states and the Federal Capital Territory (FCT). 

The ten states with the highest debts account for over 64% of the total subnational debt, which is ₦2.48 trillion.

Here are the top ten most indebted states in Nigeria:

1. Lagos – ₦874.04 billion

Lagos remains the most indebted state in Nigeria, with a debt of ₦874.04 billion. As Nigeria’s commercial and financial capital, Lagos is constantly investing in infrastructure such as roads, housing, and urban development.

While Lagos generates significant revenue, the costs of these developments have led to a high debt burden.

The state’s large economy and the demand for development have contributed to its ability to manage this debt, but it remains the highest in the country.

2. Rivers – ₦364.39 billion

Rivers state, home to Nigeria’s oil industry, has a debt of ₦364.39 billion as of Q1 2025. Despite being an oil-producing state, Rivers has faced difficulties with fluctuating oil prices, which have affected its revenue.

The state has made significant investments in infrastructure, including in the capital, Port Harcourt. However, the decline in oil revenue and the costs of these projects have added to its debt.

3. Delta – ₦204.72 billion

Delta state’s debt stands at ₦204.72 billion. As an oil-producing state, Delta’s revenue has been impacted by the drop in oil prices and output.

Despite this, the state continues to invest in infrastructure, particularly in roads and housing. These efforts have led to an increase in borrowing, which is now a major challenge for the state’s economy.

4. Ogun – ₦190.14 billion

Ogun state has a debt of ₦190.14 billion, mainly due to investments in infrastructure, especially in industrial zones aimed at attracting business investments. While Ogun has a growing industrial sector, the state’s reliance on borrowing to fund these projects has contributed to its rising debt.

The challenge for Ogun is to ensure that these investments generate enough returns to cover its borrowing costs.

5. Enugu – ₦188.42 billion

Enugu state has accumulated a debt of ₦188.42 billion as of Q1 2025. Enugu’s government has invested heavily in infrastructure, particularly in roads and energy projects, which has led to increased borrowing.

However, the state’s reliance on federal allocations and its challenges with generating non-oil revenue have put a strain on its finances.

6. Niger – ₦143.75 billion

Niger state has a debt of ₦143.75 billion. The state’s debt has been driven by efforts to improve infrastructure, especially in rural areas.

Niger’s economy relies heavily on agriculture, but the lack of industrialisation and limited revenue generation options has led to borrowing to fund its development plans.

7. Bauchi – ₦142.40 billion

Bauchi’s debt stands at ₦142.40 billion, driven by large-scale infrastructure projects and the need to improve public services.

The state has faced challenges with revenue generation, relying on federal allocations to finance its development. These challenges have resulted in increased borrowing, which continues to grow.

8. Benue – ₦129.82 billion

Benue state has a debt of ₦129.82 billion. The state’s economic challenges include a reliance on federal revenue, limited industrial development, and infrastructure deficits.

Benue has borrowed heavily to fund road construction and other public services, which have contributed to its growing debt burden.

9. Imo – ₦122.09 billion

Imo state’s debt stands at ₦122.09 billion. The state has faced significant financial pressures due to its reliance on oil revenue and borrowing to finance public projects.

While the state has invested in infrastructure and social services, these efforts have contributed to its high debt levels.

10. Akwa Ibom – ₦118.21 billion

Akwa Ibom ranks tenth with a debt of ₦118.21 billion. Despite being an oil-rich state, Akwa Ibom faces challenges with revenue generation and has borrowed heavily to finance its development projects.

Like other oil-dependent states, fluctuations in oil prices have affected its ability to generate sufficient revenue to meet its financial obligations.