Lagos Tops Nigerian States in Debt with N1.22tn and $1.17bn

Lagos State is now Nigeria’s most indebted state as of Q4 2025. It owes N1.22 trillion in domestic debt and $1.17 billion externally. The National Bureau of Statistics reports that total public debt rose 3.9% from Q3 to Q4 2025. Domestic obligations stood at N84.85 trillion, while external debts reached N74.43 trillion. Among states, Rivers follows with N378.81 billion in domestic debt, and Jigawa and Ondo recorded the lowest domestic levels. The Federal Capital Territory had the smallest external debt. Experts warn that rising debt service costs are crowding out critical infrastructure spending. Analysts urge fiscal reforms and export diversification to ease the burden.

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