Lagos State has been identified as the state with the highest debt burden in Nigeria. Data from the National Bureau of Statistics (NBS) for the fourth quarter of 2025 reveals that the state has accumulated a domestic debt amounting to N1.22 trillion and an external debt of $1.17 billion.
The NBS released its Q4 2025 domestic and external debt report on Monday, April 27, indicating that Nigeria's total debt stock, encompassing both domestic and external liabilities, climbed from N153.29 trillion ($103.94 billion) in the third quarter of 2025 to N159.28 trillion ($110.97 billion) by the end of the fourth quarter.
This represents a quarter-on-quarter increase of 3.90 per cent in the nation's overall debt profile.
In terms of national breakdown for Q4 2025, the total external debt stood at N74.43 trillion, while the total domestic debt reached N84.85 trillion.
Analysis of the total public debt in naira terms showed that external debt constituted 46.73 per cent, with domestic debt making up the remaining 53.27 per cent.
Among the sub-national entities, Lagos State recorded the highest domestic debt at N1.22 trillion. Following Lagos was Rivers State with N378.81 billion. Jigawa State had the lowest domestic debt, amounting to N1.60 billion, with Ondo State close behind at N8.42 billion.
Regarding external debt, Lagos State also led with $1.17 billion. Kaduna State followed with $684.29 million. The Federal Capital Territory (FCT) reported the lowest external debt at $26.80 million, while Zamfara State was next lowest with $41.93 million.
Other states with significant debt burdens include Bauchi, with external and domestic debts of $220.57 million and N156.05 billion respectively; Delta, with $63.42 million external debt and N248.83 billion domestic debt; and Enugu, with $99.88 million external debt and N157.60 billion domestic debt.
The growing debt levels have become a significant concern for Nigerians, as the costs associated with servicing this debt place considerable pressure on the nation's revenue.
Earlier in April, the World Bank issued a warning that Nigeria's escalating debt service expenses are diminishing its capacity to finance essential infrastructure projects. The bank highlighted a notable decrease in capital spending to 1.0 per cent of GDP from 1.3 per cent in 2024, attributing this to debt servicing crowding out investment.
The International Debt Report 2025 has also pointed out that Nigeria and other Sub-Saharan African nations need to implement export diversification and fiscal reforms to tackle their mounting debt challenges. The report noted that despite subdued growth, debt levels and servicing obligations continue to rise, reflecting persistent fiscal strain.
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