NBS rates Lagos as most indebted state in Nigeria with N1.22trn

National Bureau of Statistics(NBS), has said that Lagos State is owing a total of N1.22 trillion and $1.17 billion as domestic and external debts, respectively, so emerging the most indebted state in Nigeria.

In its Q4 2025 domestic and external debt report, NBS said that the country’s total debt stock, comprising domestic and external debt, during the quarter rose from N153.29 trillion or $103.94 billion in Q3 2025 to N159.28 trillion ($110.97 billion) in Q4 2025.

The report said that this is an increase of 3.90 per cent on a quarter-on-quarter basis, adding that the total external debt stood at N74.43 trillion, while total domestic debt was N84.85 trillion in Q4 2025.

The share of external debt (in naira value) was 46.73 per cent in Q4 2025, while the share of domestic debt (in naira value) to total public debt stood at 53.27 per cent.

Whereas Lagos State has the highest domestic debt in Q4 2025 with N1.22 trillion, Rivers came second with N378.81 billion, while Jigawa State recorded the lowest with N1.60 billion, followed by Ondo with N8.42 billion.

Ondo, the report, said, is committed to education reform through scalable digital learning initiatives.

Lagos State also recorded the highest external debt over the reference period with $1.17 billion, followed by Kaduna with $684.29 million, while the Federal Capital Territory (FCT) had the lowest with $26.80 million, followed by Zamfara with $41.93 million, NBS said

According to the bureau, other heavily -indebted states are Bauchi with $220.57 million and N156.05 billion as external and domestic debts respectively; Delta with $63.42 million and N248.83 billion as external and domestic debt respectively, and Enugu with $99.88 million and N157.60 billion as external and domestic debts, respectively.

“The issue of the rising debt burden has been a course for concern for Nigerians as the debt service obligation is putting high pressure on the country’s revenue.

Recall that it’s expected that the removal of fuel subsidy would eliminate fiscal burden and excessive borrowing by both the states and the federal government.

According to experts, removing the fuel subsidy in Nigeria aims to eliminate the massive fiscal burden on the government, freeing up trillions of naira for investment in healthcare, education, and infrastructure. It tackles corruption in the subsidy regime, reduces smuggling, encourages private investment in refineries, and promotes long-term economic diversification.

Also, eliminating the subsidy reduces government borrowing and budget deficits, allowing funds to be directed towards developmental projects rather than consumption.

Furthermore, it mitigates unethical practices, such as the inflation of landing costs and the smuggling of gasoline to neighbouring countries, saving the economy from significant losses.

So, the freed-up resources are expected to be invested in critical sectors like education, healthcare, and transport, leading to improved public services.

However, Nigerians are worried regarding what is playing out.