Nigeria’s subnational debt profile witnessed a significant shift in 2024, as new data revealed that the combined debt stock of the 36 states declined by a massive 32.32% year-on-year, falling from N5.86 trillion in 2023 to N3.97 trillion in 2024.
The contraction signals a renewed focus by several state governments on debt sustainability, budgetary discipline, and alternative financing models amid growing fiscal pressures.
However, despite this broad-based decline, some states remain deeply entrenched in the country’s debt landscape—either due to existing financial obligations or a strategic push for infrastructure-led growth.
Here’s a breakdown of the top 10 states with the highest public debt stock in 2024 and how they compare year-on-year.
10. Enugu – N119.28 billion
Enugu bucked the trend with a 29.36% debt increase from N92.21 billion in 2023, pointing to ramped-up borrowing in the current fiscal year, defying the national downtrend. This can be attributed to a combination of ambitious budget expansion and aggressive borrowing.
The spike is tied to the state’s expansionary 2024 budget of N521.5 billion—an ambitious 132% increase over the prior year—under Governor Peter Mbah’s “Budget of Disruptive Economic Growth,” Over 80% of the budget (N414.3 billion) was earmarked for capital projects spanning roads, smart schools, healthcare centers, water infrastructure, and power.
Despite targeting N300 billion in IGR, Enugu’s strategy still relied heavily on borrowing: N71 billion in domestic loans and N32.75 billion from foreign sources. While the state hopes these investments will drive long-term growth, analysts are raising concerns about the pace of borrowing, fiscal transparency, and debt sustainability.
9. Akwa Ibom – N122.19 billion
Akwa Ibom trimmed its debt by 35.85% after recording N190.48 billion last year—possibly driven by improved oil-related revenue inflows and improved fiscal discipline.
As a major oil-producing state and beneficiary of the 13% derivation fund, Akwa Ibom saw increased FAAC allocations in 2024 amid higher global oil prices and improved output. The extra revenues enabled the state to service its debt and limit new borrowings. The sharp debt drop underscores a deliberate effort to reduce exposure to debt while leveraging improved revenue streams.
The sharp drop in Akwa Ibom’s debt figure appears to be primarily driven by increased oil revenue inflows, supported by fiscal prudence and debt repayment efforts. With greater income from crude oil earnings, the state had more room to meet obligations and cut back on new borrowing—resulting in the impressive debt contraction.
8. Benue – N122.57 billion
Benue’s public debt declined by 34.51%, down from N187.18 billion in 2023, reflecting a prudent fiscal posture and alignment with national debt sustainability objectives.
Benue’s debt decline is a reflection of cautious fiscal management, likely driven by reduced borrowing appetite, improved debt servicing, and alignment with nationwide debt sustainability efforts.
Middle-belt states like Benue have embraced more cautious borrowing policies, focusing on internal revenue improvement and expenditure controls. The move signals a broader shift toward responsible debt management across Nigeria’s northern corridor.
Middle-belt states like Benue have embraced more cautious borrowing policies, focusing on internal revenue improvement and expenditure controls. The move signals a broader shift toward responsible debt management across Nigeria’s northern corridor.
7. Imo – N126.14 billion
Imo State executed one of the most notable debt reductions in 2024, slashing its obligations by 41.90%, bringing down debt from N217.11 billion in 2023.
The drastic drop was achieved through debt restructuring, tighter fiscal controls, and a revamped Debt Management Strategy (DMS).
The state focused on refinancing short-term, high-interest loans and aggressively ramped up IGR, reportedly growing from N400 million in 2020 to nearly N4 billion in 2025, thanks to digital reforms and improved tax compliance. This revenue surge allowed the state to fund more projects internally, reducing the need for borrowing.
6. Niger – N140.74 billion
Niger State’s debt stock remained largely stable with a marginal 0.67% increase over 2023 figures, suggesting cautious borrowing and drawdowns on previously approved facilities.
Governor Umaru Bago’s administration has pursued an infrastructure-driven growth model, with projects like urban renewal in Minna and the Bida Ring Road. However, the state’s Medium-Term Debt Strategy favors concessional funding over high-interest borrowing, keeping debt expansion in check while sustaining capital investments.
5. Bauchi – N143.95 billion
Bauchi saw a modest decline of 10.48% from N160.81 billion in 2023, maintaining its position in the top five.
The state’s “Budget of Consolidation and Renewed Focus” prioritized the completion of ongoing projects, limiting new debt-heavy ventures.
With N178 billion (59.6%) of the N300 billion budget allocated to capital projects, Bauchi relied on counterpart funding and federal grants to execute projects while controlling borrowing.
Enhanced budget scrutiny by the State House of Assembly ensures that Ministries, Departments, and Agencies (MDAs) justify their spending plans. This scrutiny helped curb unnecessary borrowing, thereby contributing to leaner, more focused fiscal planning.
4. Delta– N199.58 billion
Delta State achieved a significant 46.55% drop in debt levels compared to 2023’s N373.41 billion, one of the largest YoY declines among all states.
The drop stems from aggressive debt repayments exceeding N130 billion of its inherited financial obligations in 2024 alone, as part of a broader effort to reduce its debt burden and restore fiscal credibility. This repayment was prioritized despite competing demands on the state’s budget.
According to the state’s 2024 Debt Sustainability Analysis (DSA), the state adopted a medium-term debt strategy that emphasized the avoidance of new commercial borrowings, a pivot to concessional project-tied loans, and refinancing of inherited debts under favorable terms.
Delta’s debt position signals a shift toward long-term fiscal consolidation and improved creditworthiness.
3. Ogun – N211.86 billion
Ogun’s debt decreased by 23.98% from N278.68 billion in 2023, buoyed by a surge in Internally Generated Revenue (IGR). The state appears to be on a debt-reduction trajectory, likely influenced by improved internally generated revenue (IGR) and refinancing of legacy loans.
With a projected IGR of N240 billion in 2024, Ogun remains one of the least FAAC-dependent states in Nigeria. Enhanced tax collection, digital revenue systems, and economic base diversification supported the state’s refinancing of legacy loans and reduced the need for new borrowings.
The 2024 budget reflected judicious allocation, prioritizing infrastructure that enhances competitiveness, earning Ogun investor confidence and public trust.
2. Rivers – N364.39 billion
Rivers State posted a massive 56.67% YoY increase in debt, jumping from $232.58 billion in 2023, moving it firmly into second place.
The surge is attributed to post-election capital expansion and liabilities tied to uncompleted contracts. Rivers is one of two Nigerian states with an IGR-to-operating-expense ratio exceeding 100%—at 121.26% in 2024—allowing it fiscal room for aggressive borrowing.