Nigeria’s State Debts Drop Sharply in 2024: 36 States Cut Total Debt by 32% – But These

In a surprising turn for Nigeria’s public finance landscape, the combined domestic and external debt of the country’s 36 states and the FCT plunged by 32.32% in 2024, dropping from ₦5.86 trillion at the end of 2023 to just ₦3.97 trillion by the end of 2024, according to the latest Debt Management Office (DMO) figures.

This dramatic reduction highlights a growing emphasis on debt sustainability, fiscal discipline, and exploration of non-debt financing options as states grapple with rising costs, naira depreciation, and limited federal allocations.

While most governors slashed borrowing and repaid existing loans, a handful of states continued aggressive infrastructure spending, keeping them at the top of Nigeria’s most indebted states in 2024 list.

Top 10 Most Indebted Nigerian States in 2024 (Latest Ranking)

Here are the Nigerian states with the highest public debt stock in 2024 and their year-on-year changes:

1 Lagos State – Still Nigeria’s most indebted state (exact 2024 figure pending final DMO release, but historically dominant)

2 Ogun State – Heavy infrastructure borrowing continues

3 Rivers State – Large legacy and new obligations

4 Delta State – Oil-rich but debt-heavy

5 Cross River State – Long-standing high debt profile

6 Akwa Ibom State

7 Oyo State

8 Kaduna State

9 Imo State

10 Enugu State – The only state that increased its debt significantly in 2024

Enugu State Defies National Trend: Debt Jumps 29.36% in One Year

Unlike the nationwide deleveraging, Enugu State recorded a sharp 29.36% rise in total public debt, climbing from ₦92.21 billion in 2023 to over ₦119 billion in 2024.

Governor Peter Mbah’s administration launched an ultra-ambitious ₦521.5 billion 2024 budget titled the “Budget of Disruptive Economic Growth” — a massive 132% jump from the previous year. Key highlights include:

Over ₦414.3 billion (80%) allocated to capital expenditure

Major investments in roads, smart schools, modern healthcare facilities, water schemes, and independent power projects

Planned ₦71 billion in new domestic loans + ₦32.75 billion in external borrowing

While the governor targets ₦300 billion in internally generated revenue (IGR) to reduce borrowing dependency, the state still leaned heavily on fresh loans to fund its transformation agenda.

Analysts have mixed views: supporters praise the bold infrastructure push as necessary for long-term economic growth, while critics warn about debt sustainability risks, especially if IGR targets are missed and interest rates remain high.