The domestic debt of Nigeria’s 36 states and the Federal Capital Territory (FCT) increased by N198.96 billion within three months.
This is according to the latest subnational debt report from the Debt Management Office (DMO).
The total domestic debt of states and the FCT rose by 5% from N4.07 trillion in March 2024 to N4.27 trillion by June 2024.
Naijaonpoint observed variations in debt levels across the states, with some recording significant increases while others showed marginal changes or reductions.
Rivers State recorded the highest percentage increase in debt during the period under review. The state’s debt rose by 67%, jumping from N232.58 billion in March to N389.20 billion in June, an increase of N156.62 billion.
These sharp increases highlight a significant reliance on borrowing to finance government projects and other commitments, raising concerns about the sustainability of such debt levels.
Lagos State, which continues to carry the highest debt burden among the states, saw a 5% decline in its debt stock.
In contrast, Delta State achieved one of the largest reductions in debt stock, decreasing its domestic debt by N30.36 billion, representing a 9% drop from N334.90 billion in March to N304.54 billion in June. Bayelsa and Ebonyi states also managed to reduce their debts by 6% and 9%, respectively.
Naijaonpoint earlier exclusively reported that Nigeria’s public debt stock surged to N134.3 trillion ($91.3 billion) by the end of the second quarter of 2024. This was an increase of 10.35% from the N121.7 trillion ($91.5 billion) recorded in the first quarter and announced by the Debt Management Office (DMO).
Domestic debt accounted for 53% of the total, amounting to N71.2 trillion ($48.4 billion), while external debt made up 47%, equivalent to N63.1 trillion ($42.9 billion).