Quarter 1 2026: Lagos, Abuja, Rivers, Delta Lead States with Highest Debt Increase

Nigeria’s subnational domestic debt rose in the first quarter of 2026, driven largely by a 106.43% increase in borrowing by the Federal Capital Territory (FCT).

Data from the Debt Management Office (DMO) show that the combined domestic debt of Nigeria’s 36 states and the FCT rose to N4.52 trillion by March 2026, from N4.36 trillion in December 2025.

This represents a 3.74% increase, or N163.25 billion, during the three-month period.

The FCT recorded the biggest increase, with its debt stock rising sharply from N188.86 billion to N389.88 billion, effectively more than doubling in three months.

The top 10 jurisdictions accounted for N3.09 trillion, representing 68.35% of the total subnational domestic debt stock.

What the data is saying

The ranking below compares the 10 states (including the FCT) with the highest domestic debt stocks as of March 2026.

10. Enugu — N120.03 billion

Enugu recorded a domestic debt stock of N120.03 billion as of March 2026, down from N157.60 billion in December 2025.

This represents a 23.84% decline, the largest reduction among the top 10 jurisdictions reviewed.

9. Cross River — N132.30 billion

Cross River’s debt stock stood at N132.30 billion, compared with N137.36 billion three months earlier.

The figure declined by 3.68% during the quarter.

8. Niger — N140.69 billion

Niger recorded N140.69 billion in domestic debt at the end of March, slightly below the N142.67 billion recorded in December.

The state’s debt declined by 1.39% during the period.

7. Bauchi — N154.45 billion

Bauchi’s debt stock stood at N154.45 billion, down marginally from N156.05 billion in December 2025.

This represents a 1.03% decline over the period.

6. Edo — N172.37 billion

Edo recorded a domestic debt stock of N172.37 billion, rising sharply from N91.18 billion in December.

The 89.04% increase was the second largest among the states reviewed and pushed Edo into the top six most indebted jurisdictions.

5. Ogun — N200.75 billion

Ogun’s debt stock declined to N200.75 billion from N227.47 billion in December 2025.

This represents an 11.75% reduction during the quarter, although the state remained among Nigeria’s most indebted jurisdictions.

4. Delta — N213.85 billion

Delta recorded N213.85 billion in domestic debt as of March 2026, down from N248.83 billion at the end of 2025.

The state recorded a 14.06% decline.

3. Rivers — N362.43 billion

Rivers remained Nigeria’s second-largest state debtor, with a domestic debt stock of N362.43 billion.

The figure declined by 4.32% from N378.81 billion in December 2025.

However, the sharp increase in FCT debt pushed the territory ahead of Rivers in the overall ranking of states and the FCT.

2. FCT — N389.88 billion

The Federal Capital Territory recorded the biggest increase in domestic debt among the jurisdictions reviewed, with its debt stock rising from N188.86 billion in December 2025 to N389.88 billion in March 2026.

That represents a 106.43% increase, which is effectively more than double the FCT’s debt stock.

The increase lifted the FCT from fifth place at the end of 2025 to second place by March 2026, overtaking Rivers, Delta, and Ogun state.

1. Lagos — N1.21 trillion

Lagos remained Nigeria’s most indebted state, with a domestic debt stock of N1.21 trillion as of March 2026.

However, its debt declined slightly from N1.22 trillion in December 2025, representing a 1.18% reduction.

Lagos accounted for about 26.64% of the total N4.52 trillion domestic debt owed by the 36 states and the FCT.

Why the FCT’s debt increase stands out

The FCT’s 106.43% increase is particularly notable because it occurred alongside a significant improvement in the territory’s revenue generation.

FCT Minister Nyesom Wike said in July that the territory’s internally generated revenue had increased from about N9 billion per month to more than N40 billion within three years. He attributed the improvement partly to the FCT’s removal from the Treasury Single Account (TSA), which he said provided greater financial flexibility for revenue generation and infrastructure development.

The minister also said the FCT generated a record N262 billion in internally generated revenue (IGR) in 2024

He also defended the territory’s infrastructure spending, saying about 70% of projects completed during the administration were projects that had been awarded and abandoned for about 15 to 16 years.

This provides important context around the FCT’s rising debt stock. The increase in debt does not, by itself, indicate financial distress. The more important question is whether the additional debt is being supported by stronger revenues and deployed towards projects that can deliver lasting economic value.

Other states with notable debt increases

Beyond the top 10, several states recorded significant increases in domestic debt during the first quarter of 2026:

• Borno: up 107.40%, from N42.64 billion to N88.44 billion.
• Yobe: up 21.73%, from N81.00 billion to N98.59 billion.
• Benue: up 5.24%, from N107.23 billion to N112.85 billion.
• Kaduna: up 3.80%, from N84.64 billion to N87.87 billion.
• Nasarawa: up 2.82%, from N26.41 billion to N27.15 billion.

What this means

Nigeria’s subnational domestic debt increased by N163.25 billion, from N4.36 trillion in December 2025 to N4.52 trillion in March 2026.

1. The increase was not uniform across the country. While FCT, Borno and Edo recorded sharp increases, several of the largest debtors including Lagos, Rivers, Delta, Ogun and Enugu, reduced their outstanding debt during the quarter.
2. The concentration of debt also remains significant. Lagos alone accounted for more than a quarter of total state and FCT domestic debt, while the top 10 jurisdictions accounted for more than two-thirds.
3. The concentration is particularly striking at the top of the ranking. Lagos’ N1.21 trillion domestic debt is more than three times the FCT’s N389.88 billion and more than 10 times Enugu’s N120.03 billion, highlighting the wide gap between the country’s largest debtors and the other states.

With state and FCT domestic debt now above N4.5 trillion, changes in borrowing, debt repayments and internally generated revenue will show how well subnational governments are managing their finances.

Source: Nairametrics