Lagos, FCT, Rivers hold 43% of states' N4.52 trillion domestic debt, DMO says

Lagos, the Federal Capital Territory (FCT) and Rivers State accounted for 43.27% of Nigeria's N4.52 trillion domestic debt as of March 31, 2026. The three states had a combined debt stock of N1.96 trillion, according to the Debt Management Office's first-quarter 2026 domestic debt data.

Debt stock by state

Lagos had the highest domestic debt stock at N1.21 trillion, representing about 26.6% of the combined total. The FCT followed with N389.88 billion, while Rivers State had N362.43 billion.

Delta State recorded N213.85 billion, followed by Ogun State with N200.75 billion. Jigawa had the smallest domestic debt stock at N1.60 billion, followed by Ondo at N7.31 billion and Anambra at N9.62 billion.

Several states recorded debt stocks below N20 billion. These included Ebonyi at N12.30 billion, Katsina at N12.69 billion and Kebbi at N14.58 billion.

What changed in Q1 2026

The combined domestic debt stock of the 36 states and the FCT increased by N163.25 billion, or about 3.7%, between December 2025 and March 2026. The FCT recorded the largest rise, with its debt stock jumping from N188.86 billion in December 2025 to N389.88 billion in March 2026.

Edo also rose significantly, from N91.18 billion to N172.37 billion. Borno increased from N42.64 billion to N88.44 billion, while Yobe rose from N81.00 billion to N98.59 billion.

However, some of the largest debtors recorded declines. Lagos fell from N1.22 trillion to N1.21 trillion, Rivers declined from N378.81 billion to N362.43 billion, Delta dropped from N248.83 billion to N213.85 billion, and Ogun fell from N227.47 billion to N200.75 billion.

The DMO's Q4 2025 data had shown a combined domestic debt stock of N4.36 trillion for the states and the FCT. Lagos was the largest debtor at N1.22 trillion, followed by Rivers at N378.81 billion and Delta at N248.83 billion.

Lagos context

Lagos State generated N1.67 trillion in recurrent revenue in the first half of 2026, achieving 90% of its half-year target. In January 2026, the Lagos State House of Assembly passed a N4.44 trillion budget for the 2026 fiscal year.

Governor Babajide Sanwo-Olu had originally presented a N4.24 trillion budget proposal to the assembly in November 2025. The approved N4.44 trillion budget consists of N2.052 trillion in recurrent expenditure and N2.185 trillion in capital expenditure.

The figures show state borrowing remains heavily concentrated in a few states. That concentration matters for consumers and businesses because Lagos and the FCT drive a large share of economic activity, and their debt levels reflect their fiscal size.