Nigeria's total external debt stock reached $51 billion (N74.43 trillion) in the fourth quarter of 2025, according to the latest data from the National Bureau of Statistics (NBS). External debt now accounts for 46.73% of the country's total public debt.
Lagos remains the most indebted state
Among the 36 states and the Federal Capital Territory (FCT), Lagos State recorded the highest external debt profile at $1.17 billion, far ahead of other subnational governments. It was followed by Kaduna State with $684.29 million and Edo State with $354.03 million.
Top 10 states with highest external debt (Q4 2025)
- Lagos – $1.17 billion
- Kaduna – $684.29 million
- Edo – $354.03 million
- Cross River – $222.92 million
- Bauchi – $220.57 million
- Ogun – $216.99 million
- Katsina – $200.62 million
- Rivers – $170.90 million
- Niger – $140.59 million
- Ekiti – $136.31 million
States with the lowest external debt
At the lower end, the FCT recorded the least external debt at $26.80 million, followed by Zamfara State with $41.93 million, Jigawa ($45.72 million), Yobe ($46.67 million), and Taraba ($48.04 million). Others include Akwa Ibom ($55.46 million), Bayelsa ($55.46 million), Benue ($58.35 million), Nasarawa ($60.82 million), and Delta ($63.43 million).
Concerns over rising public debt
Nigeria's growing debt profile continues to attract scrutiny over debt servicing costs, foreign exchange pressures, and fiscal sustainability. Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), noted that while foreign borrowing can help ease resource shortages if used productively, debt service obligations continue to constrain fiscal space and undermine budget execution.
Domestic debt profile
The Debt Management Office (DMO) also reported that Nigeria's total public domestic debt stood at N4.36 trillion in Q4 2025. Lagos again led with N1.22 trillion, followed by Rivers (N378.81 billion) and Delta (N248.83 billion). Other top states include Ogun (N227.47 billion), FCT (N188.86 billion), Enugu (N157.60 billion), Bauchi (N156.05 billion), Niger (N142.67 billion), Cross River (N137.36 billion), and Edo (N91.18 billion).
States with the lowest domestic debt include Jigawa (N1.60 billion), Ondo (N8.42 billion), Anambra (N11.55 billion), Ebonyi (N13.48 billion), and Katsina (N14.11 billion).
Debt servicing costs
Earlier reports indicated that the Nigerian government spent N8.93 trillion ($6.2 billion) on debt servicing in the first nine months of 2025, representing 61% of the N14.55 trillion revenue generated in the period. Debt servicing costs were N2.26 trillion in Q1, N3.77 trillion in Q2, and N2.89 trillion in Q3.
