Lagos, the Federal Capital Territory (FCT), and Rivers State accounted for more than 43% of the N4.52 trillion domestic debt owed by Nigeria’s 36 states and the FCT as of March 31, 2026. According to the first-quarter 2026 domestic debt data released by the Debt Management Office (DMO), the combined domestic debt of these three territories stood at N1.96 trillion, representing 43.27% of the total debt stock.

The figures show a wide variation in the domestic debt stock across the states, with Lagos alone accounting for more than a quarter of the total. The overall domestic debt stock of the states and FCT increased by N163.25 billion, or about 3.7%, from the N4.36 trillion recorded in December 2025.

Concentration of State Debt

According to the DMO, Lagos had the highest domestic debt stock at N1.21 trillion, representing about 26.6% of the combined total. The FCT followed with N389.88 billion, while Rivers State had N362.43 billion. Delta State recorded N213.85 billion, followed by Ogun State with N200.75 billion.

At the lower end, Jigawa had the smallest domestic debt stock at N1.60 billion, followed by Ondo at N7.31 billion and Anambra at N9.62 billion. Several other states recorded debt stocks below N20 billion, including Ebonyi at N12.30 billion, Katsina at N12.69 billion, and Kebbi at N14.58 billion. The figures highlight the concentration of domestic debt among a relatively small number of states, with the five largest debtors accounting for a substantial share of the combined stock.

Debt Growth and Reductions

The FCT recorded the largest rise during the period, with its debt stock increasing from N188.86 billion in December 2025 to N389.88 billion in March 2026. Edo also recorded a significant increase, with its debt stock rising from N91.18 billion to N172.37 billion. Borno increased from N42.64 billion to N88.44 billion, while Yobe rose from N81.00 billion to N98.59 billion.

Conversely, some of the largest debtors recorded declines. Lagos’ debt stock fell from N1.22 trillion in December 2025 to N1.21 trillion in March 2026, while Rivers declined from N378.81 billion to N362.43 billion. Delta’s debt stock fell from N248.83 billion to N213.85 billion, and Ogun declined from N227.47 billion to N200.75 billion.

In terms of revenue, Lagos State generated N1.67 trillion in recurrent revenue in the first half of 2026, achieving 90% of its half-year target. The Lagos State House of Assembly passed a N4.44 trillion budget for the 2026 fiscal year in January 2026, consisting of N2.052 trillion in recurrent expenditure and N2.185 trillion in capital expenditure. This budget was originally presented by Governor Babajide Sanwo-Olu as a N4.24 trillion proposal in November 2025.