- Imo, Akwa Ibom and Ogun recorded the largest domestic debt reductions between Q2 2023 and Q2 2026
- Imo reduced its domestic debt by N141.34 billion, followed by Akwa Ibom with N118.05 billion and Ogun with N104.15 billion
- External debt increased in nine of the 10 states between June 2023 and June 2026, while Bayelsa recorded reductions in both domestic and external debt
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Ten Nigerian states recorded significant reductions in domestic debt between Q2 2023 and Q2 2026, with Imo State leading the ranking after cutting its debt stock by N141.34 billion.
An analysis of figures obtaind from the National Bureau of Statistics supplied for the 36 states and the Federal Capital Territory shows that Imo, Akwa Ibom and Ogun recorded the three largest reductions in domestic debt over the period.
Source: Twitter
However, a comparison with external debt figures for June 2023 and June 2026 shows that lower domestic debt did not always translate into lower external obligations. Nine of the 10 states recorded increases in external debt.
Top 10 states that reduced domestic debt most
1. Imo State
Imo recorded the largest reduction, cutting its domestic debt from N220.84 billion in Q2 2023 to N79.50 billion in Q2 2026. This represents a decline of N141.34 billion, or approximately 64%.
Its external debt, however, rose from $77.81 million in June 2023 to $109.20 million in June 2026, an increase of about $31.38 million.
2. Akwa Ibom State
Akwa Ibom reduced its domestic debt from N199.58 billion in Q2 2023 to N81.53 billion in Q2 2026, representing a decline of N118.05 billion, or 59.1%.
Its external debt increased from $43.54 million in June 2023 to $81.84 million in June 2026, an increase of approximately $38.30 million.
3. Ogun State
Ogun cut its domestic debt from N293.20 billion in Q2 2023 to N189.05 billion in Q2 2026, reducing its debt stock by N104.15 billion.
Its external debt moved in the opposite direction, rising from $111.62 million in June 2023 to $225.12 million in June 2026, an increase of about $113.50 million.
4. Plateau State
Plateau reduced its domestic debt from N157.62 billion in Q2 2023 to N59.37 billion in Q2 2026, representing a reduction of N98.24 billion.
Meanwhile, its external debt increased from $31.42 million in June 2023 to $141.17 million in June 2026, an increase of approximately $109.75 million.
5. Oyo State
Oyo lowered its domestic debt from N162.40 billion in Q2 2023 to N66.40 billion in Q2 2026, cutting its obligations by N96 billion.
Its external debt increased from $63.99 million in June 2023 to $108.61 million in June 2026, representing an increase of about $44.62 million.
6. Abia State
Abia reduced its domestic debt from N142.47 billion in Q2 2023 to N48.63 billion in Q2 2026, a decline of N93.85 billion.
Its external debt, however, rose from $92.33 million in June 2023 to $133.55 million in June 2026, an increase of approximately $41.22 million.
7. Bayelsa State
Bayelsa cut its domestic debt from N134.51 billion in Q2 2023 to N43.49 billion in Q2 2026, representing a reduction of N91.02 billion.
It also recorded a decline in external debt, which fell from $59.80 million in June 2023 to $54.29 million in June 2026, a reduction of about $5.51 million.
Bayelsa was the only state among the 10 to record reductions in both domestic and external debt over the periods compared.
8. Benue State
Benue reduced its domestic debt from N186.94 billion in Q2 2023 to N112.32 billion in Q2 2026, a decline of N74.62 billion.
Its external debt increased from $29.30 million in June 2023 to $71.15 million in June 2026, representing an increase of approximately $41.85 million.
Source: Facebook
9. Cross River State
Cross River lowered its domestic debt from N204.05 billion in Q2 2023 to N130.01 billion in Q2 2026, reducing its obligations by N74.04 billion.
Its external debt rose from $153.17 million in June 2023 to $223.35 million in June 2026, an increase of about $70.18 million.
10. Kano State
Kano completed the list after cutting its domestic debt from N122.36 billion in Q2 2023 to N51.17 billion in Q2 2026, a reduction of N71.19 billion.
However, its external debt increased from $101.32 million in June 2023 to $239.05 million in June 2026, an increase of approximately $137.73 million.
Nigeria’s debt servicing costs
Earlier, Legit.ng reported that the federal government spent N8.93 trillion on servicing its debt in the first nine months of the year, equivalent to about $6.2 billion.
The amount accounted for 61% of the N14.55 trillion in revenue recorded during the period.
A breakdown of the expenditure showed that debt servicing stood at N2.26 trillion in the first quarter, rose to N3.77 trillion in the second quarter, and reached N2.89 trillion in the third quarter.
Source: Legit.ng