The domestic debt stock of Nigeria’s 36 states and the Federal Capital Territory (FCT) rose to N4.59 trillion as of June 2026, with the 10 largest debtors accounting for about 70 per cent of the total, latest data from the Debt Management Office (DMO) have shown.

The sub-national domestic debt stock increased by N67.57 billion, or 1.49 per cent, from N4.52 trillion in March 2026.

Year-on-year, the debt stock rose by N627.35 billion, from N3.96 trillion in June 2025, representing a 15.83 per cent increase.

The figures also reveal a growing concentration of domestic borrowing among a relatively small number of sub-national governments, with the 10 largest debtors accounting for about N3.22 trillion, or 70.2 per cent, of the total.

Lagos remained the most indebted state, with domestic liabilities of N1.195 trillion as of June 30, 2026, accounting for about 26 per cent of the combined debt of the states and the FCT.

Although Lagos reduced its debt by 0.81 per cent from about N1.21 trillion in March, its debt stock remained 14.78 per cent above the N1.041 trillion recorded in June 2025.

The latest figures, however, show significant movements among other major debtors.

Delta State recorded one of the sharpest increases, with its domestic debt rising to N369.30 billion in June from N213.85 billion in March, representing a 72.69 per cent quarterly increase.

On a year-on-year basis, Delta’s debt rose by 80.44 per cent from N204.67 billion in June 2025. The increase moved the state from fourth to second position in the latest ranking.

The FCT also recorded a sharp increase over the year, although its debt declined during the quarter.

Its domestic debt stood at N358.79 billion in June, placing it third among the states and the FCT, compared with N389.88 billion in March.

The FCT’s debt therefore declined by 7.97 per cent quarter-on-quarter but was more than four times its N71.04 billion level in June 2025.

Rivers State ranked fourth, with N354.64 billion. Its debt fell by 2.15 per cent from N362.43 billion in March and was also below the N364.39 billion recorded a year earlier.

Edo State also recorded a substantial increase, with domestic debt rising to N214.93 billion from N172.37 billion in March, representing a 24.69 per cent quarterly increase.

Compared with June 2025, Edo’s debt was 167.60 per cent higher than its N80.32 billion level, representing an increase of about N134.61 billion in one year.

Ogun State remained among the largest debtors despite recording a decline during the quarter. Its debt fell by 5.83 per cent to N189.05 billion from N200.75 billion in March, although it remained 16.04 per cent above its June 2025 level.

Bauchi’s domestic debt increased to N157.35 billion, up 1.88 per cent quarter-on-quarter and 9.56 per cent year-on-year.

Niger State recorded N140 billion, representing a marginal 0.49 per cent decline from March and a 1.08 per cent reduction from June 2025.

Cross River’s debt fell to N130.01 billion, down 1.73 per cent from March and 11.73 per cent from June 2025.

Benue recorded N112.32 billion, down 0.48 per cent from March and significantly below its N133.53 billion level a year earlier.

The DMO figures show that the increase in sub-national domestic debt was not evenly distributed across the federation.

While several states reduced their liabilities, the aggregate increase was driven substantially by fresh accumulation among a smaller group of states.

The 10 largest debtors added about N731 billion to their combined domestic debt over the 12-month period, indicating that the growth in aggregate liabilities was concentrated among the largest borrowers.

The pattern raises questions about how states recording the sharpest increases are financing expenditure and managing the repayment obligations associated with additional borrowing.

For state governments, domestic borrowing can provide funding for capital projects and other budgetary needs. However, increased borrowing also creates future debt-service obligations that must be met from internally generated revenue and other public resources.

The concentration of debt among a relatively small group of states also means that developments in the finances of these sub-national governments could have a significant bearing on the overall trajectory of state-level indebtedness.