Lagos accounts for over 70% of South-West Nigeria’s domestic debt, hitting ₦1.04 trillion in mid-2025

Key Takeaways

  • Lagos dominates regional debt with a domestic debt stock of ₦1.04 trillion, over 70% of the South-West’s total subnational debt.
  • Lagos’s debt is six times larger than that of Ogun (₦162.9 billion), the region’s next most indebted state.
  • At ₦10.6 billion, Ondo maintains the lowest domestic debt profile in the region, reflecting relatively modest borrowing.
  • The combined domestic debt of the six South-West states (Lagos, Ogun, Oyo, Osun, Ekiti, and Ondo) stood at ₦1.43 trillion as of Q2 2025.

As of Q2 2025, Lagos State continues to dominate the South-West’s fiscal landscape with a domestic debt stock of ₦1.04 trillion, representing more than 70% of the region’s total ₦1.43 trillion. The state’s high debt level reflects its role as Nigeria’s economic hub, financing massive infrastructure and social investment projects. Ogun (₦162.9 billion) follows distantly, while Oyo (₦83.2 billion) and Osun (₦82.3 billion) maintain moderate borrowing levels. Ekiti (₦49.9 billion) and Ondo (₦10.6 billion) round out the list, underscoring the uneven fiscal capacities within the region. Despite the disparities, the data highlights Lagos’s outsized role in Nigeria’s subnational debt dynamics, both as a driver of growth and a major debtor.

Source:

Debt Management Office

Period:

Q2 2025
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