Nigeria’s total debt stock rose by 24.90 percent in the first quarter (Q1) of 2024 to N121.67 trillion from N97.34 trillion as of December 2023, according to data from the Debt Management Office (DMO).
Total external debt stood at N56.02 trillion in the first quarter of 2024, while total domestic debt was N65.65 trillion in the same period.
The report stated that only the domestic debt component of total debt stock grew from N59.12 trillion in December 2023 to N65.65 trillion in March 2024.
“The increase was from new borrowing to part-finance the 2024 budget deficit and securitisation of a portion of the N7.3 trillion Ways and Means Advances at the Central Bank of Nigeria,” it said.
BusinessDay’s analysis revealed that the five most indebted states in Nigeria owed a total of N1.88 trillion in domestic debt as of March this year.
The states are Lagos, Delta, Ogun, Rivers, and Imo, accounting for about a third of the domestic debt of N4.06 trillion owed by the subnational governments in the country.
Lagos State topped the list of States with the highest domestic debt in the first quarter of 2024.
Read also: Nigeria’s public debt is ballooning and here is what you should know about it
Here is a breakdown of the top five states with the highest domestic debt according to the DMO.
Lagos State
Lagos State, Nigeria’s commercial hub, recorded the highest domestic debt of N929.41 billion as of March 2024. In December 2023, Lagos State recorded a total of N1.0487 trillion in domestic debt.
Delta State
Delta State ranked second with a domestic debt stock of N334.9 billion as of March 2024. The state’s domestic debt was at N373.4 billion in December 2023.
Rivers State
Ranking after Delta State, Rivers State’s domestic debt was N232.58 million as of March 2024. The state’s domestic debt stood unchanged at N232.58 in December 2023.
Ogun State
Ogun State ranks fourth with a domestic debt stock of N221.21 billion by March 2024. In December 2023, Ogun State’s domestic debt stock stood at N278.6 billion.
Imo State
Imo State ranks after Ogun with a domestic debt stock of N163.11 billion in March 2024. In December 2023, Imo State’s domestic debt stock stood at N217.1 billion.
The DMO also highlighted that while borrowing, as provided in the 2024 Appropriation Act, will continue, it “expects improvements in the Government’s Revenue to enhance debt sustainability.”
