The Federal Government says 33 states and the Federal Capital Territory (FCT) have lowered their domestic debt profiles by repaying about N1.85 trillion between June 2023 and December 2024.
This information was detailed in The Explainer magazine, a weekly publication of the National Orientation Agency (NOA), dated May 16, 2025.
“Today, at least 33 states and the Federal Capital Territory (FCT) have reduced their domestic debt portfolios at an unprecedented rate. Thus, within a period of 18 months, spanning June 2023 to December 2024, these states have repaid a total sum of N1.85 trillion to their creditors,” the publication said.
According to NOA, the 36 states and FCT had a domestic debt stock of N1.66 trillion as of December 2014, which rose to N2.5 trillion by the end of 2015. By June 30, 2023, this figure had grown to over N5 trillion.
The publication highlighted specific states’ debt increases leading up to 2023. Osun’s debt rose from N37.82 billion in 2014 to N145.71 billion by June 2023. Delta State’s domestic debt increased from N211.95 billion to N465.41 billion. Jigawa’s debt moved from N1.57 billion to N43.13 billion. Imo State’s debt grew from N28.95 billion to N220.84 billion. Anambra’s domestic debt climbed from N2.88 billion to N76.4 billion, while Sokoto’s debt increased from N7.65 billion to N91.68 billion.
The NOA attributed part of the debt repayments to the Tinubu administration’s policies, such as ending the petrol subsidy and floating the naira, which allowed states to access more revenues through federal allocations. While states and local governments shared a total of N6.16 trillion in FAAC allocations in 2023—up 28.6 percent from N4.792 trillion in 2022—the allocations further increased to N9.58 trillion in 2024, N3.42 trillion higher than in 2023, aiding debt repayment efforts.
Among the 33 states that reduced their debt, Delta, Lagos, Imo, Cross River, and Ogun led repayments, with Delta repaying N265.83 billion, Lagos N96.23 billion, Imo N94.70 billion, Cross River N85.91 billion, and Ogun N81.35 billion.
However, three states—Niger, Enugu, and Rivers—did not reduce their debts and instead increased borrowing. Between June 2023 and December 2024, Niger’s debt rose by N18.79 billion, Enugu’s by N26.09 billion, and Rivers State’s by N138.89 billion.
The publication also stated that the Federal Government spent over $7 trillion (N11.2 trillion) servicing its external debt within the first 18 months of the Tinubu administration, with the International Monetary Fund (IMF) being the largest creditor.
“As at June 30, 2023, Nigeria’s indebtedness to IMF stood at $3.264 billion. Six months later, in December 2023, Nigeria’s IMF debt had decreased to $2.469 billion. By December 2024, the debt was further reduced to $800.23 million. This balance was cleared in the second quarter of 2025 as confirmed by the IMF. Essentially, in less than two years, Nigeria has paid off its entire $3.264 billion debt to the IMF,” the report said.
Other debts repaid by the Federal Government include the N22 trillion securitized Ways and Means arrears, the first N100 billion Sukuk bond issued in 2018, and N5.87 trillion in domestic debt paid off in 2024.
The report added that Nigeria’s domestic debt stood at N8.81 trillion in 18 months, while the total public debt stock dropped from $113.42 billion in June 2023 to $94.22 billion by December 31, 2024.
