Nigeria's external debt has gradually grown to nearly half of the country's total public debt as of H1 2024

Key takeaways:

  • External debt has nearly doubled as in 2017, it stood at 26.64%, but by 2024, it had risen to 46.96%.
  • Domestic debt has dropped from 73.36% in 2017 to 53.04% in 2024, showing a decline.
  • Nigeria’s increasing reliance on external loans suggests a strategic shift in public debt financing.
  • Unlike other years, domestic debt share slightly increased in 2023, rising to 60.74%, before external debt rebounded in 2024.
  • A rising share of external debt means higher exposure to foreign exchange risks and global market conditions.
  • If the trend continues, Nigeria’s external and domestic debt may soon be equal, reducing the traditional dominance of domestic borrowing.

The share of external debt in the country’s total public debt has increased from 26.64% in 2017 to 46.96% in the first half of 2024. This represents a clear trend of rising external borrowing, reducing the dominance of domestic debt in the overall debt structure. External debt has nearly doubled its share within this period, while domestic debt has seen a corresponding decline.
In 2017, domestic debt accounted for over 73% of total public debt, but by 2024, it had dropped to just 53%. This shift highlights a growing reliance on foreign borrowing, which could have implications for debt servicing costs, exchange rate fluctuations, and overall economic stability.

Source:

Debt Management Office (DMO)

Period:

2017 - 2024
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Lagos’s domestic debt is 7.5% (₦72.6 billion) higher than the South South’s
  • The South-West recorded the highest domestic debt stock of approximately ₦1.43 trillion, largely powered by Lagos State’s ₦1.04 trillion debt.
  • The South-South ranks second with ₦968 billion, led by Rivers State’s ₦364.4 billion, reflecting major infrastructure and fiscal commitments.
  • The North-Central (₦520 billion) and North-East (₦450 billion) show moderate borrowing compared to their southern counterparts.
  • The North-West records the smallest combined debt stock at ₦223 billion, indicating a relatively conservative borrowing posture.
Enugu - South-East’s top domestic debtor - owes more than Imo, Abia, and Anambra combined
  • Enugu State holds the highest domestic debt in the South-East at ₦180.5 billion.
  • Imo ranks second with ₦97.9 billion, about 54% lower than Enugu’s figure.
  • At ₦15.8 billion, Ebonyi remains the least indebted in the region, maintaining a conservative borrowing stance.
  • Combined, the five South-East states (Enugu, Imo, Abia, Anambra, and Ebonyi) owe roughly ₦371 billion domestically as of Q2 2025.
Rivers State's domestic debt is 3.5% (₦12.4b) more than the combined debt of Delta and Cross River
  • Bayelsa holds the lowest debt with ₦65.9 billion.
  • Rivers’ ₦364.4 billion domestic debt is almost six times Bayelsa’s total, highlighting major fiscal disparities.
  • Delta (₦204.7 billion) and Cross River (₦147.3 billion) remain among the region’s more indebted states
  • Regional debt approaches ₦1 trillion: The six South-South states collectively hold an estimated ₦968 billion in domestic debt as of Q2 2025.
Jigawa recorded the lowest domestic debt in North-West Nigeria at ₦852 million in Q2 2025
  • The seven North-Western states collectively owed about ₦223.4 billion in domestic debt as of Q2 2025, according to DMO data.
  • Kano State ranked highest with ₦56.9 billion, accounting for roughly 25% of the zone’s total debt.
  • Jigawa remains the least indebted in the region and in the entire country, with only ₦852 million.
  • Moderate debt spread: While Kano, Zamfara, and Sokoto carried the largest debt loads, the remaining states maintained relatively conservative borrowing patterns.
Kogi and Nasarawa post lowest domestic debt in North Central Nigeria at ₦18.8 billion and ₦23.9 billion, respectively
  • 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.
Lagos accounts for over 70% of South-West Nigeria’s domestic debt, hitting ₦1.04 trillion in mid-2025
  • 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.
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