By JKNewsMedia
RISING DEBT levels have placed Lagos State at the top of Nigeria’s debt chart, with a combined domestic and external burden of N1.22 trillion and $1.17 billion as of the fourth quarter of 2025.
JKNewsMedia.com reports that the figures released by the National Bureau of Statistics (NBS) showed Nigeria’s total public debt increased from N153.29 trillion in the third quarter of 2025 to N159.28 trillion in the fourth quarter, representing a 3.9 percent rise.
The report also stated that total external debt stood at N74.43 trillion, while domestic debt accounted for N84.85 trillion, reflecting continued borrowing from both local and foreign sources to finance government obligations.
Among subnational governments, Lagos recorded the highest debt profile, followed by Rivers State with N378.81 billion. Jigawa State posted the lowest domestic debt, while Ondo also ranked among the least indebted states.
Lagos also led in external liabilities with $1.17 billion, ahead of Kaduna State at $684.29 million, while the Federal Capital Territory (FCT) recorded the lowest external debt at $26.8 million.
Other states with notable debt exposure included Bauchi, Delta, and Enugu, indicating a wider trend of increasing fiscal pressure across the federation.
JKNewsMedia.com also reports that the report comes as concerns grow over Nigeria’s debt sustainability, with rising repayment obligations affecting government revenue and capital investment.
Earlier, the World Bank warned that higher debt servicing costs are limiting infrastructure spending, noting that capital expenditure declined to 1.0 percent of GDP in 2025.
It also urged Nigeria and other Sub-Saharan African economies to implement fiscal reforms and diversify exports to address debt challenges and improve long term economic stability.
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