Subnational money owed hit N4.6trn mid-year as Lagos, Delta, FCT, Rivers, Edo account for 54%

Subnational home debt stood at roughly N4.6 trillion on the finish of June 2026, representing about 5 per cent of the N91.6 trillion home debt inventory of the Federal Government, states and the FCT.

Lagos, Delta, the FCT, Rivers, and Edo account for about 54 per cent of subnational home debt, reflecting borrowing concentrated in a handful of jurisdictions. Lagos, regardless of accounting for 26 per cent of the overall, advantages from a stronger internally generated income base, which helps its capability to satisfy obligations and reduces reliance on federal allocations.

The outlook for state funds will rely on the power to broaden internally generated income, handle recurrent expenditure and comprise borrowing prices, in line with analysts at Proshare.

The Debt Management Office’s (DMO) newest public debt knowledge present that the mixed home debt inventory of the 36 state governments and the Federal Capital Territory (FCT) stood at nearly N4.6 trillion as at end-June 2026.

“In terms of contribution, subnational debt accounts for only five per cent of Nigeria’s total public domestic debt stock of N91.6 trillion, with the Federal Government of Nigeria (FGN) accounting for the overwhelming majority at NGN87.0 trillion, or 95 per cent of the total. In standardised terms, the combined debt stock of the states and the FCT translates to approximately 0.9 per cent of our FY 2026 GDP forecast, suggesting that subnational debt remains relatively modest when viewed against the size of the overall economy”, stated Proshare.

Despite the modest measurement of the combination debt inventory, debt sustainability varies significantly throughout states, reflecting vital variations in internally generated income (IGR), FAAC allocations and total income.