Imo State recorded the largest reduction in domestic debt among Nigerian states between Q2 2023 and Q2 2026, cutting its debt stock by N141.34 billion, according to an analysis of data from the National Bureau of Statistics (NBS) for the 36 states and the Federal Capital Territory.
Akwa Ibom and Ogun followed with reductions of N118.05 billion and N104.15 billion, respectively. However, a comparison of external debt figures for June 2023 and June 2026 shows that lower domestic debt did not always translate into lower external obligations, as nine of the 10 states recorded increases in external debt.
Top 10 States by Domestic Debt Reduction
The analysis, reported by Legit.ng's Senior Business Editor Dave Ibemere, ranks the states as follows:
1. Imo State: Domestic debt fell from N220.84 billion in Q2 2023 to N79.50 billion in Q2 2026, a decline of N141.34 billion (approximately 64%). External debt, however, rose from $77.81 million in June 2023 to $109.20 million in June 2026, an increase of about $31.38 million.
2. Akwa Ibom State: Domestic debt dropped from N199.58 billion to N81.53 billion, a reduction of N118.05 billion (59.1%). External debt increased from $43.54 million to $81.84 million, up approximately $38.30 million.
3. Ogun State: Domestic debt decreased from N293.20 billion to N189.05 billion, a cut of N104.15 billion. External debt rose from $111.62 million to $225.12 million, an increase of about $113.50 million.
4. Plateau State: Domestic debt reduced from N157.62 billion to N59.37 billion, a decline of N98.24 billion. External debt increased from $31.42 million to $141.17 million, up approximately $109.75 million.
5. Oyo State: Domestic debt lowered from N162.40 billion to N66.40 billion, a reduction of N96 billion. External debt rose from $63.99 million to $108.61 million, an increase of about $44.62 million.
6. Abia State: Domestic debt fell from N142.47 billion to N48.63 billion, a decline of N93.85 billion. External debt increased from $92.33 million to $133.55 million, up approximately $41.22 million.
7. Bayelsa State: Domestic debt dropped from N134.51 billion to N43.49 billion, a reduction of N91.02 billion. External debt also fell from $59.80 million to $54.29 million, a reduction of about $5.51 million. Bayelsa was the only state among the 10 to record reductions in both domestic and external debt over the compared periods.
8. Benue State: Domestic debt reduced from N186.94 billion to N112.32 billion, a decline of N74.62 billion. External debt increased from $29.30 million to $71.15 million, up approximately $41.85 million.
9. Cross River State: Domestic debt lowered from N204.05 billion to N130.01 billion, a reduction of N74.04 billion. External debt rose from $153.17 million to $223.35 million, an increase of about $70.18 million.
10. Kano State: Domestic debt cut from N122.36 billion to N51.17 billion, a reduction of N71.19 billion. External debt increased from $101.32 million to $239.05 million, up approximately $137.73 million.
External Debt Trends and National Debt Servicing
The data shows that while these states made progress on domestic debt, external debt burdens grew for most, with Kano recording the largest external debt increase of about $137.73 million among the top 10.
Earlier, Legit.ng reported that the federal government spent N8.93 trillion on servicing its debt in the first nine months of the year, equivalent to about $6.2 billion. That amount accounted for 61% of the N14.55 trillion in revenue recorded during the period.
A breakdown of the federal expenditure showed that debt servicing stood at N2.26 trillion in the first quarter, rose to N3.77 trillion in the second quarter, and reached N2.89 trillion in the third quarter.
