30 states’ debt outpaces half their annual revenue - Punch Newspapers

At least 30 of Nigeria’s 36 states had domestic debt stocks exceeding 50 per cent of their internally generated revenue in 2025, highlighting the gap between their outstanding domestic obligations and revenue raised internally, according to data from the Debt Management Office and the National Bureau of Statistics. The figures analysed by The PUNCH on Wednesday show that the Federal Capital Territory also had a domestic debt stock equivalent to more than half of its internally generated revenue, bringing the number of states and the FCT above the 50 per cent threshold to 31. The analysis compares domestic debt outstanding as of December 31, 2025, with internally generated revenue recorded during the year. It is a measure of the size of outstanding domestic debt relative to annual IGR, not a comprehensive assessment of debt sustainability, which also considers federal allocations, other revenue sources, debt servicing costs, and repayment schedules. States whose domestic debt stock is larger than their revenue may have a bigger share of their monthly inflows going towards interest payments and principal repayments, leaving less money for road construction, infrastructure provision, schools, hospitals and other public services. This creates a constant squeeze on day-to-day spending and forces governments to choose between meeting debt obligations and delivering basic amenities. As a result, states may be charged higher interest rates or find it difficult to raise new funds for capital projects. In extreme cases, they risk delayed payments to contractors, accumulation of arrears and growing pressure on the Federation Account allocations that many already depend on heavily. This dependence has persisted despite the sharp rise in revenues available to states following the removal of petrol subsidy, foreign exchange reforms and higher revenues accruing to the Federation Account. The DMO’s Domestic Debt Data Report for the 36 States of the Federation and the Federal Capital Territory as of December 31, 2025, put their combined domestic debt at N4.36tn. Lagos accounted for N1.22tn, the largest amount among the states, while the total IGR generated by the states and the FCT reached approximately N5.15tn in 2025, according to the NBS data supplied for the analysis. When compared year-on-year, the combined domestic debt of the 36 states and FCT stood at N3.97tn as of December 31, 2024, and rose to N4.36tn by December 31, 2025, an increase of about N392bn or nearly 10 per cent. The figures underscore the differences in states’ revenue-generating capacity and debt exposure. While some states recorded substantial internally generated revenue, others had relatively small revenue bases against which their outstanding domestic obligations could be measured.See more Punch stories on Google.Add Punch on Google Analysed data from the Debt Management Office and the National Bureau of Statistics show wide differences between the domestic debt stocks of Nigeria’s 36 states and their internally generated revenue in 2025, with some states owing more than three times their annual IGR. The figures contrast with states whose annual internally generated revenue was substantially lower than their outstanding domestic obligations. Abia recorded domestic debt of N48.41bn against IGR of N70.41bn, leaving revenue N22bn higher than debt. Its debt-to-IGR ratio was 68.8 per cent. Adamawa’s debt of N67.03bn was almost twice its N33.76bn revenue, exceeding IGR by N33.26bn, or 98.5 per cent. Akwa Ibom’s N84.85bn debt represented 84.2 per cent of its N100.80bn IGR, while Anambra’s N11.55bn debt was only 20.3 per cent of its N57.03bn revenue. Bauchi’s N156.05bn debt was nearly three times its N52.79bn IGR, exceeding revenue by N103.26bn, or 195.6 per cent. Bayelsa’s N51.38bn debt marginally exceeded its N50.30bn IGR by N1.08bn, representing 102.1 per cent of revenue. Benue recorded N107.23bn in debt against N29.57bn in IGR, a difference of N77.67bn, with debt reaching 362.7 per cent of revenue. Borno’s N42.64bn debt exceeded its N36.36bn IGR by N6.28bn, or 17.3 per cent. Cross River’s N137.36bn debt was 234.2 per cent of its N58.64bn IGR, exceeding revenue by N78.72bn. Delta’s N248.83bn debt was N46.34bn above its N202.49bn IGR, representing 122.9 per cent of revenue. Ebonyi’s N13.48bn debt accounted for 78.4 per cent of its N17.18bn IGR, while Edo’s N91.18bn debt was below its N132.21bn revenue by N41.03bn. Ekiti recorded N43.94bn in debt against N57.09bn in IGR, with debt representing 77 per cent of revenue. Enugu’s N157.60bn debt was 38.7 per cent of its N406.77bn IGR, leaving revenue N249.17bn higher. Gombe’s N67.20bn debt exceeded its N43.96bn IGR by N23.24bn, or 52.9 per cent. Imo’s N83.75bn debt was 191.9 per cent of its N43.65bn revenue, a gap of N40.10bn. Jigawa had the lowest ratio, with N1.60bn in debt against N66.73bn in IGR, representing 2.4 per cent of revenue. Teacher bags life jail for defiling eight-year-old pupil Nigeria@66: From resilience to enduring capability Two men acquitted of land theft charges Kaduna’s N84.64bn debt was slightly below its N86.75bn IGR, accounting for 97.6 per cent of revenue. Kano’s N53.75bn debt represented 52.6 per cent of its N102.26bn IGR. Katsina recorded N14.11bn in debt against N64.29bn in revenue, while Kebbi’s N14.71bn debt represented 47.1 per cent of its N31.23bn IGR. Kogi’s N27.95bn debt was 63.6 per cent of its N43.94bn revenue, while Kwara’s N62.99bn debt accounted for 66.1 per cent of its N95.36bn IGR. Lagos had the largest debt stock at N1.22tn, but its N1.77tn IGR exceeded debt by N549.74bn. Its debt represented 68.9 per cent of annual revenue. Nasarawa’s N26.41bn debt accounted for 81.1 per cent of its N32.57bn IGR. Niger’s N142.67bn debt was more than twice its N66.37bn revenue, exceeding it by N76.30bn. Ogun’s N227.47bn debt represented 90.1 per cent of its N252.36bn IGR, while Ondo’s N8.42bn debt was only 14 per cent of its N60.32bn revenue. Osun’s N80.28bn debt exceeded its N56.84bn IGR by N23.44bn, or 41.2 per cent. Oyo’s N77.42bn debt represented 75 per cent of its N103.25bn revenue. Plateau’s N67.50bn debt was 149.7 per cent of its N45.10bn IGR, exceeding revenue by N22.40bn. Rivers recorded N378.81bn in debt against N428.42bn in IGR, leaving revenue N49.61bn higher. Sokoto’s N47.39bn debt was 231.4 per cent of its N20.48bn IGR, exceeding revenue by N26.92bn. Taraba’s N85.51bn debt was 303.7 per cent of its N28.16bn revenue, a gap of N57.35bn. Yobe recorded the highest ratio, with N81bn in debt against N16.01bn in IGR, making debt 506 per cent of revenue and exceeding it by N64.99bn. Zamfara’s N57.04bn debt was 189.7 per cent of its N30.07bn IGR, exceeding revenue by N26.97bn. The Federal Capital Territory recorded N188.86bn in domestic debt against N356.34bn in IGR. Its revenue exceeded debt by N167.47bn, while the debt stock represented 53 per cent of annual IGR. Overall, 30 states had domestic debt stocks exceeding half of their 2025 IGR, while six states, Anambra, Enugu, Jigawa, Katsina, Kebbi and Ondo, recorded ratios below 50 per cent. The comparison measures outstanding domestic debt against one year’s internally generated revenue. These comparisons illustrate how the size of a state’s revenue base can affect the scale of its domestic debt relative to internally generated income. The figures also show that high IGR does not automatically mean a state has little domestic debt. Lagos, for instance, had the largest domestic debt stock, but its annual IGR exceeded that amount. By contrast, states with smaller revenue bases may face greater pressure when meeting obligations from internally generated funds alone. The NBS figures show that the states and the FCT generated approximately N3.79tn in tax revenue and N1.36tn from MDAs, bringing total IGR to about N5.15tn in 2025. Tax revenue accounted for the larger share of collections, although the relative contributions of taxes and MDAs varied across the states. The domestic debt figures exclude external debt and do not, on their own, establish whether a state can meet its repayment obligations. Federal allocations, other receipts, debt maturity profiles and the cost of servicing loans are also relevant to assessing each state’s fiscal position. The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently called for stronger fiscal federalism, improved revenue generation and economic diversification to strengthen Nigeria’s resilience to economic shocks. The minister spoke in Owerri, the Imo State capital, at the 2026 National Council on Finance and Economic Development Retreat. Speaking on the theme ‘Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy,’ Oyedele insisted on the retreat interrogating the current allocation and derivation principles, even as he called for greater fiscal responsibility, accountability and cooperation among Nigeria’s three tiers of government to achieve sustainable economic growth. The minister urged state governments nationwide to strengthen their Internally Generated Revenue, attract investments and create jobs rather than rely heavily on federal allocations. Also speaking, the Imo State Governor, Hope Uzodimma, who was represented at the event by his Deputy, Chinyere Ekomaru, said that states must be empowered to generate more revenue and efficiently manage available resources, pointing out that continued dependence on oil revenue was no longer sustainable. An economist and former Vice-Chancellor of the University of Uyo, Prof Akpan Ekpo, recently stressed that “states have to think of new ways of increasing their IGRs.” He urged the states to increase their revenue by improving service delivery, which will attract more revenue. A renowned economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, earlier said that a majority of states were not financially sustainable and were at risk of insolvency without a boost in investment. He said, “This issue is a fiscal sustainability problem, showing that many states are not fiscally sustainable and need to work towards it; and that the states need to do a lot more to attract more investments to their states so that their level of dependence on the Federal Allocation Accounts Committee would reduce.” Damilola Aina Damilola Aina is a journalist at Punch Newspapers with over five years of experience covering energy, business, investment, infrastructure, and property sectors. He specializes in producing well-researched and insightful reports that inform readers and provide clarity on complex topics. Damilola’s work demonstrates practical newsroom experience, editorial insight, and a strong commitment to accurate and engaging journalism.

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