The domestic debt of Nigeria’s 36 states and the Federal Capital Territory (FCT) went up by N198.96 billion over three months, according to the latest report from the Debt Management Office (DMO). The total domestic debt for these states and the FCT grew by 5%, from N4.07 trillion in March 2024 to N4.27 trillion by June 2024.
The rise in domestic debt was not the same for all states. Some states saw big increases, others had little or no change, and a few even managed to lower their debt levels.
Among the states, Rivers, Taraba, and Niger had the biggest increases. Rivers State had the highest percentage increase in its debt, going up by 67%, from N232.58 billion in March to N389.20 billion in June, which is an increase of N156.62 billion.
Taraba State saw a significant increase in its debt, rising by 160% from N32.64 billion to N84.72 billion, which is a difference of N52.08 billion. Niger State also experienced a 70% rise in its debt, adding N60.22 billion to its March debt of N86.07 billion, bringing its total to N146.29 billion by June.
These large increases show that these states are increasingly relying on borrowing to pay for government projects and other financial obligations. This raises concerns about whether they can manage their debts over the long term.
On the other hand, Lagos State, which has the highest debt among the states, managed to reduce its debt. The state decreased its domestic debt by 5%, from N929.41 billion in March to N885.99 billion in June, a reduction of N43.42 billion. Other states like Delta, Bayelsa, and Ebonyi also reduced their debt. Delta had one of the biggest reductions, cutting its debt by N30.36 billion, or 9%, from N334.90 billion in March.
