The domestic debt owed by state governments and the Federal Capital Territory administration rose to N5.33 trillion as of the end of December 2022. This represents an increase of N870 billion from the sub‑national domestic debt stock of N4.46 trillion recorded at the end of 2021.
According to the latest figures released by the Debt Management Office (DMO), Lagos State had the highest domestic debt at the end of Q4 2022, amounting to N807.21 billion. It was followed by Delta State with N304.25 billion and Ogun State with N270.45 billion. The lowest debt levels were recorded by Jigawa State (N43.95 billion), Kebbi State (N61.31 billion) and Katsina State (N62.37 billion).
In the detailed state debt profile, Abia, Adamawa, Akwa Ibom and Anambra owed N103.7 billion, N124 billion, N219.2 billion and N77.4 billion respectively. Bauchi, Bayelsa, Benue and Borno borrowed N143.6 billion, N146.3 billion, N141.3 billion and N96.1 billion respectively. Other debtor states include Cross‑River (N197.2 billion), Ebonyi (N76.4 billion), Edo (N110.5 billion), Ekiti (N117.1 billion), Enugu (N91.8 billion), Gombe (N139.3 billion), Imo (N204.2 billion), Kaduna (N83.3 billion), Kano (N122.3 billion), Kogi (N93.6 billion), Kwara (N109.3 billion), Nasarawa (N71.4 billion), Niger (N95.5 billion), Ondo (N77.1 billion), Osun (N148.3 billion), Oyo (N161.1 billion), Plateau (N149 billion), Sokoto (N90.5 billion), Taraba (N87.9 billion), Yobe (N90.7 billion), Zamfara (N112.1 billion) and the Federal Capital Territory (N81 billion). The DMO notes that the domestic debt figure for Rivers State is as of 30 September 2021, while the figures for Katsina and Taraba states are as of 30 September 2022.
Reacting in an earlier interview, Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, warned that the rising debt profile raises serious sustainability concerns. He explained, “The government tends to argue that the condition was not a debt problem, but a revenue challenge; the truth is that debt becomes a problem if the revenue base is not strong enough to service the debt sustainably. It invariably becomes a debt problem and possibly a debt crisis. The government’s actual revenue can hardly cover the recurrent budget, which implies that the entire capital budget and part of the recurrent expenditure are being funded from borrowing. This is surely not sustainable.”
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