Nigeria's state-level domestic debt stock reached N4.59 trillion in the second quarter of 2026, marking a slower growth rate of 1.49% compared to previous quarters. The Debt Management Office (DMO) reported an increase of approximately N67.57 billion from March 2026.
The ten most indebted states, including the Federal Capital Territory (FCT), collectively hold N3.22 trillion, representing over 70% of the total subnational debt. This group saw a quarter-on-quarter increase of 4.44% and a year-on-year rise of 29.35%.
While total state debt rose by N627.35 billion year-on-year, the top ten states accounted for a significant N731.05 billion of that increase, indicating a decline in debt levels outside this group. The overall debt figure also reflects a 15.83% increase from N3.96 trillion in June 2025.
Among the top ten, Lagos, Delta, and the FCT remain the most indebted, with the FCT experiencing a staggering 405.06% annual increase. This data underscores the pressing fiscal challenges faced by these states as they navigate economic pressures and funding needs.