Nigeria’s 26 states collectively increased their external debt stock by US$239 million during the first half of 2025, according to recent data. Despite the rise, the overall external debt for the states and the Federal Capital Territory (FCT) edged up only slightly, reaching approximately US$4.812 billion by June.

Among the states, Imo, Oyo, Kaduna, Enugu, and Ogun recorded the largest increments, borrowing US$36.2 million, US$35.7 million, US$33.6 million, US$27.3 million, and US$21.8 million, respectively. Other states contributed smaller amounts, with several recording less than US$1 million.

Notably, 11 states and the FCT reduced their external debt through repayments totaling around US$227 million, partially offsetting the new borrowing.

The increase in state-level borrowing comes against the backdrop of Nigeria’s broader public debt, which stood at US$46.98 billion in external obligations and a total public debt stock of N152.39 trillion as of Q2 2025. Analysts warn that while states rely on external borrowing to fund development projects, careful debt management remains crucial to fiscal sustainability. Visit www.jocomms.com for more news.