Kogi and Nasarawa post lowest domestic debt in North Central Nigeria at ₦18.8 billion and ₦23.9 billion, respectively

Key Takeaways

  • The six North Central states collectively hold ₦449.4 billion in domestic debt as of Q2 2025, according to DMO data.
  • Kogi and Nasarawa lead in fiscal control with ₦18.8 billion and ₦23.9 billion, respectively
  • Both states record the lowest debt profiles in the region. Niger State’s ₦141.5 billion debt makes it the region’s most indebted, accounting for nearly one-third of the total.
  • The debt gap between Kogi (lowest) and Niger (highest) stands at over ₦123 billion, highlighting stark differences in fiscal management and borrowing capacity across the zone.

As of Q2 2025, Kogi and Nasarawa stand out in the North Central debt landscape for their fiscal restraint, maintaining domestic debts of ₦18.8 billion and ₦23.9 billion, respectively. This contrasts sharply with Niger State’s hefty ₦141.5 billion, the highest in the region. Benue (₦133.5 billion) and Plateau (₦74.4 billion) follow closely, driven largely by financing for infrastructure and public services. In total, the region’s ₦449 billion domestic debt reflects both progress in subnational financing and uneven fiscal discipline among states, with Kogi and Nasarawa emerging as the most debt-conscious performers.

Source:

Debt Management Office

Period:

Q2 2025
HTML code to embed chart
Want a bespoke report?
Reach out
Click to copy HTML embed code
Tags
Related Insights
Two-thirds of IDA’s commitments in one year went to Africa, led by Nigeria’s $3.1bn
  • Africa received 66% of IDA’s FY2025 commitments.
  • Africa’s total IDA allocation was $22.4 billion out of $33.8 billion.
  • Nigeria was the largest borrower from the DA globally, with $3.1 billion in loans.
  • Bangladesh ranked second with $3 billion.
  • Six of the top ten borrowers were African countries.
  • Nigeria accounted for 9.3% of total FY2025 IDA commitments.
Oyo has reduced external debt by 36% and domestic debt by 22% under Makinde
  • Oyo reduced external and domestic debt by the end of 2025.
  • External debt fell faster than domestic debt.
  • External debt declined more consistently over the period.
  • Oyo’s local debt peaked around 2022–2023 before falling back.
  • The state appears to have prioritised reducing FX exposure.
Africa has been the world's biggest World Bank borrower since 2017, owing $152 billion as of 2024
  • Africa has been the world's biggest World Bank borrower since 2017, and the gap is widening.
  • Three crises drove it: an infrastructure gap, the 2014 commodity crash, and COVID-19.
  • The World Bank leaned in deliberately — 66% of all IDA funds went to Africa in 2025 alone.
  • It's not really "Africa's debt" — it's Nigeria's, Kenya's, Ethiopia's, Egypt's, Tanzania's, and Morocco's.
  • Every other region is slowing down, but Africa's curve is still climbing.
Under Sanwo-Olu, Lagos cut its external debt and more than doubled its domestic debt
  • Lagos cut external debt, but increased domestic debt.
  • The drop in external debt was meaningful, but the rise in domestic debt was much larger.
  • Stronger IGR gave Lagos more room to borrow and repay.
  • The state chose local funding over heavier dollar exposure.
Lagos's external debt has reduced by nearly three times more than the other six states combined
  • Lagos's debt reduction is larger than the other six combined.
  • Oyo posted the fastest reduction rate.
  • The biggest percentage cut did not equal the biggest dollar cut.
  • Debt reduction was concentrated, not broad-based.
  • Higher state revenues likely created room for repayments.
  • Lagos had the strongest fiscal capacity among the states shown.
  • Smaller debt stocks made percentage declines easier for some states.
Northern states have accounted for 12 of the 15 fastest-growing external debts in Nigeria since June 2023
  • All but four states increased their external debt between June 2023 and December 2025.
  • Northern states account for roughly 70% of the $1.34 billion added by states nationally.
  • Katsina recorded the highest growth in both absolute terms ($150 million) and rate (+296%).
  • 12 of the 15 fastest-growing state debts are in the north.
  • Lagos, Nigeria's largest debtor at $1.17 billion outstanding, was one of only four states that reduced its debt.
  • Kaduna carries the second-heaviest debt load at $684 million, despite a relatively modest 20% growth rate.
POPULAR TOPICS
SIGN UP TO OUR NEWSLETTER
Get periodic updates about the African startup space, access to our reports, among others.
Subscribe Here
Subscription Form
A product of Techpoint Africa. All rights reserved