Lagos, Rivers, Delta Top 10 Nigerian States With Highest Domestic Debt in 2024

• About 10 Nigerian states contributed significantly to Nigeria’s rising domestic debt profile in 2024
• The country’s 36 states, including the FCT, increased their domestic debt by N198 billion in the second quarter of 2024
• The 10 states are led by Lagos, Delta and Rivers, with a domestic debt increase of N198 billion in 2024

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s 36 states’ including the Federal Capital Territory (FCT), increased their domestic debts by N198 billion in three months.

The information is from the data released by the Debt Management Office on the sub-national debt for the second quarter of 2024.

State’s debts hit N4.026 a by trillion

According to the DMO data, the states’ total domestic debt and the FCT increased by five per cent from N4.068 trillion in March this year to N4.267 trillion in June 2024.

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According to analysis, debt levels varied across the states, with some showing significant increases while others showed marginal changes or reductions.

While some states, such as Lagos, Delta, and Ogun, reduced their debt burdens, others recorded sharp spikes.

10 states with the highest domestic debts

Benue

Benue State has a total domestic stock of N116.88 billion in the second quarter of 2023, showing a minimal increase from N116.73 billion in Q1 of 2024, representing a difference of N144.24 million

Akwa Ibom 

The oil-producing state reduced its domestic debt stock from N142.93 billion in the review period to N132.87 billion in Q2 of 2024.

The figure marks a significant decline of seven per cent, with a decrease of N10.06 billion, suggesting a deliberate effort by the state to manage its debt profile amid high expenses.

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Niger

The state experienced a spike in its domestic borrowings, rising from N86.07 billion in Q1 to N146.29 billion in Q2 2024, representing a 70% increase, amounting to an additional N60.22 billion in debt.

The increase may be due to its infrastructural and developmental drive, as it plays a critical role in Nigeria’s hydroelectric power and agricultural investments.

Bauchi

The state’s domestic debt rose from N108.39 billion in the review period to N147.23 billion in the second quarter, showing a 36% spike and an additional N38.84 billion in borrowings.

The figure shows that the state has invested heavily in infrastructure and social welfare initiatives.

Cross River

Cross River’s domestic borrowings declined from N156.17 billion in the second quarter to N155.49 billion in Q2 2024, representing a decline of N682.14 million.

The state debt stock highlights its efforts to maintain fiscal discipline despite its tourism and industrialisation projects.

Imo

The state reduced its domestic debt from N163.06 billion in Q1 2024 to N159.19 billion in Q2 2024, a two-per cent decrease and an N3.87 billion reduction.

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The declines underscore the state’s fiscal frugality amid its ongoing developmental projects.

Ogun

The state reduced its domestic debt from N221.22 billion in the first quarter of 2024 to N211.12 billion in Q2 2024.

The figure represents five per cent, amounting to N10.09 billion in reduced debt following its strategic debt reduction, which aligns with its focus on attracting investment and expanding its industrial base.

Delta 

It recorded one of the most significant debt reductions, cutting its domestic borrowings from N334.90 billion in Q1 2024 to N304.54 billion in Q2 2024.

The amount shows a nine per cent reduction, translating to a decrease of N30.36 billion.

The oil-producing state’s ability to cut its debt shows efforts to improve financial accountability and fiscal management.

Rivers

The state's domestic debt rose 67% from N232.58 billion in Q1 2024 to N389.20 billion in Q2 2024.

The increase amounts to N156.62 billion, making it the most significant absolute increase among the 10 states.

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Lagos

Nigeria’s commercial melting pot, Lagos, maintained its top position as the state with the highest domestic debt despite reducing from N929.41 billion in Q1 2024 to N885.99 billion in Q2 2024.

The state’s domestic debt, which decreased by five per cent to N43.42 billion, highlights its strong revenue-generating capacity, buoyed by taxes, levies, and solid business activities that boost its earnings.

Nigeria’s total debt profile rises to N134 trillion

Legit.ng earlier reported that Nigeria’s total debt profile spiked by N12.6 trillion in three months to N134.3 trillion towards the end of the second quarter of 2024.

The increase is 10.35% from the N121.7 trillion recorded in the first quarter of 2024.

An official document presented at a session on the sidelines of the World Bank/IMF annual meetings in Washington, DC, shows that the spike was due to the naira devaluation.

Source: Legit.ng