Nigerian states' debt servicing costs rise to N800bn in six months

Nigerian state governments spent N800.42 billion on debt servicing during the first half of 2026, marking a 39.5 percent increase compared to the N573.66 billion recorded during the same period in 2025. This increase of N226.75 billion has outpaced the growth of both total expenditure and recurrent revenue across the 33 states analyzed.

Lagos State accounted for approximately one-third of the total payments, totaling N261.80 billion, which represents a 241 percent increase from N76.78 billion in the first half of 2025. Lagos alone was responsible for over 81 percent of the aggregate year-on-year increase in debt servicing costs.

In Sokoto State, budget performance reports indicate that the government received N20.40 billion in international loans and borrowings between January and June 2026. This borrowing amount significantly exceeded the state’s internally generated revenue of N8.52 billion for the same period. Sokoto has generated only 11.4 percent of its projected annual independent revenue target as of the end of the second quarter.