States' domestic debt rises N67.57bn to N4.59tn as Delta's borrowing spikes
Nigeria’s 36 states and the Federal Capital Territory increased their combined domestic debt by N67.57 billion to N4.591 trillion as of June 30, 2026, according to Debt Management Office data. The 1.49% quarterly rise was driven mainly by Delta State, whose debt jumped N155.45 billion from N213.85 billion to N369.30 billion. Edo and Adamawa also saw notable increases, while Lagos, the FCT, Rivers, Enugu, Ogun, Borno and Taraba reduced their debts, partially offsetting the surge.
The rise means states owe more, which could lead to higher interest payments, potential tax increases or reduced public spending on infrastructure and services. Lagos remains the biggest debtor, holding about 26% of the total state debt despite a N9.76 billion decline. At the national level, total public debt climbed to N166.79 trillion, with domestic debt making up 54.9% of that total.
What should you watch? Rising state debt often precedes tighter fiscal policies that affect citizens’ wallets—think possible future tax adjustments or cuts to state‑funded projects. Stay informed by checking DMO quarterly reports and your state’s budget announcements to gauge how debt levels might influence local taxes, job opportunities, or service delivery in your area.