In the first half of 2024, Nigerian states spent a total of N139.92 billion servicing external debt.
This is based on a study of Federal Account Allocation Committee (FAAC) data from the National Bureau of Statistics.
The amount spent is a 122 per cent increase over the N63.06 billion spent during the same period the previous year.
According to the data, states have moved from spending around N9 billion monthly in 2023 to over N20 billion this year, which is more than double the debt service cost likely due to the naira devaluation.
Read also: Top 10 African countries with the lowest external reserves
Below are the top 10 Nigerian states with the highest external debt service costs in the first six months of 2024:
1. Lagos State: N32.44 billion
Lagos, Nigeria’s commercial hub, experienced a sharp rise in its external debt servicing costs, increasing from ₦16.88 billion in 2023 to ₦32.44 billion in 2024. This reflects a substantial increase of ₦15.56 billion, or 92.2 per cent. As a result, Lagos continues to hold the position as the most indebted state in the country
2. Kaduna State: N23.08 billion
Kaduna, a key economic centre in northwest Nigeria, experienced a N13.2 billion surge in debt service costs, rising from N9.89 billion in 2023 to N23.08 billion in 2024. This marks a 133.4 per cent increase in external debt obligations.
3. Cross River State – N7.87 billion
Cross River, known for its booming tourism sector, experienced a significant surge in external debt servicing, rising from N2.21 billion in 2023 to N7.87 billion in 2024. This N5.66 billion increase marks a 255.9 per cent jump.
Read also: Top 10 African countries with the highest external reserves
4. Oyo State – N6.36 billion
Oyo, a significant state in southwestern Nigeria known for its rich history and robust agricultural foundation, saw its external debt service increase by N3.75 billion, rising from N2.61 billion in 2023 to N6.36 billion in 2024, reflecting a 143.7 per cent growth.
5. Bauchi State – N6.33 billion
Bauchi State witnessed an increase in debt service payments, rising from N3.28 billion in 2023 to N6.33 billion in 2024. This represents a N3.05 billion increase or 92.8%.
6. Edo State – N5.9 billion
Edo state saw its external debt servicing costs rise from N2.4 billion in 2023 to N5.9 billion in 2024. This is a jump of N3.49 billion or 144.8 per cent.
Read also: External reserves jump by $490m one week after domestic dollar bond issuance
7. Rivers State – N4.62 billion
In 2024, the state’s external debt service costs rose to N4.6 billion, up from N1.76 billion in 2023, an increase of N2.85 billion or 161.9 per cent
8. Ogun State – N4.29 billion
Ogun experienced a significant increase in external debt servicing, from N1.57 billion in 2023 to N4.29 billion in 2024, reflecting an increase of 172.5 per cent or N2.72 billion.
9. Adamawa State – N3.57 billion
The state’s external debt service cost increased by N1.6 billion, from N1.98 billion in 2023 to N3.57 billion in 2024, marking an 80.7 per cent rise.
10. Osun State – N3.4 billion
Osun recorded N3.4 billion in external debt service costs, up from N1.57 billion in 2023. This represents an increase of N1.83 billion or about 116 per cent
