Nigeria states face high debt-to-revenue ratios in 2025

Data from the Debt Management Office and the National Bureau of Statistics reveal a significant fiscal divide among Nigerian states in 2025. At least 30 of the 36 states, along with the Federal Capital Territory, reported domestic debt stocks exceeding 50 per cent of their annual internally generated revenue (IGR).

States with high debt-to-IGR ratios face increased pressure on day-to-day spending, as a larger portion of monthly inflows must be directed toward interest and principal repayments. This can limit funding for essential public services such as infrastructure, schools, and hospitals. High debt levels may also lead to higher interest rates and increased dependence on federal allocations.

Conversely, Jigawa, Ondo, and Anambra recorded the lowest debt-to-IGR ratios in 2025, indicating stronger fiscal health and greater financial flexibility. Other states with relatively low ratios include the FCT, Kogi, and Kwara, though Kwara’s ratio stood at 66.06%.