Rivers State has been listed as the second most indebted subnational in Nigeria, with a debt profile of N364.39 billion in the first quarter of 2025, according to new data released by the Debt Management Office (DMO).
Despite a marginal 4.89% year-on-year (YoY) decline in the country’s total subnational debt, the combined debt of Nigeria’s 10 most indebted states rose by 2.49% YoY, climbing to N2.48 trillion from N2.42 trillion recorded in Q1 2024. These 10 states now account for 64.05% of the nation’s total subnational debt burden.
Lagos maintained its lead as the most indebted state at N874.04 billion, despite a slight YoY decline. Meanwhile, Rivers, Enugu, and Niger states saw significant increases in their debt levels, reflecting shifts in fiscal priorities and revenue realities.
The DMO attributed the reshuffling of debt positions to a combination of factors including shrinking oil revenues, infrastructure financing needs, reduced federal allocations, and ongoing fiscal constraints across states.
The other most indebted states are Delta (N204.72bn), Ogun (N190.14bn), Enugu (N188.42bn), Niger (N143.75bn), Bauchi (N142.40bn), Benue (N129.82bn), Imo (N122.09bn), and Akwa Ibom (N118.21bn).
Analysts warn that the rising debt levels among subnational entities could pose long-term sustainability risks if not matched by increased internally generated revenue and prudent fiscal management.
