Top 10 Nigerian states by domestic debt stock as of March 2021

States and the FCT accounted for ₦4.12 trillion — 19.98% of Nigeria's Total Domestic Debt and 12.45% of the Total Public Debt, with Lagos having the most outstanding debt of ₦507.4 billion — 12.3% of the Total Debt Stock by states and the FCT.

Source:

Debt Management Office of Nigeria

Period:

March 2021
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Since 2010, the Federal Government of Nigeria has spent N45.57 trillion on servicing its debt.
  • Debt servicing costs have grown significantly over the years, from ₦400 billion in 2010 to an estimated ₦11.8 trillion in 2024 — a nearly 30-fold increase in just 15 years.
  • Between 2010 and 2024, Nigeria has spent ₦45.57 trillion on servicing its debt, demonstrating the enormity of its financial obligations.
  • The year 2024 stands out as the most expensive year yet, with ₦11.8 trillion spent on debt servicing — a jump of over 37% compared to 2023's ₦8.6 trillion.
  • While debt service expenditures grew gradually in the early 2010s, the most rapid increases occurred after 2019, with spending surging from ₦2.4 trillion in 2019 to ₦8.6 trillion in 2023.
  • From 2019 to 2024, debt servicing costs rose by almost 392%, showcasing how Nigeria’s debt burden has amplified in a short period.
  • This steep rise in debt servicing diverts resources from critical areas such as infrastructure, health, and education, hindering overall development.

Nigeria's Federal Government is responsible for over 91% of the nation's public debt
States' share of Nigeria's public debt has dropped from 20.5% in 2019 to 8.5% in 2024, while the federal government’s debt has risen to over 91% of the total, in dollar terms. The FG's debt grew from $66.7 billion to $83.6 billion in this period, while the states' debt dropped from $17.2 billion in 2019 to $7.8 billion, marking a shift in borrowing dynamics at federal and state levels. Notably, states and FCT debt decreased in dollar terms but increased in naira terms, while FG debt rose in both dollar and naira terms over the same period.

Nigeria’s debt hits ₦134 trillion by mid-2024, driven by the effects of the currency's devaluation
Nigeria’s public debt decreased in dollar terms between June 2023 and June 2024. However, when converted to naira, it jumped to ₦134.3 trillion, largely due to currency devaluation. This sharp increase in debt could lead to tighter budgets, potentially affecting public services and everyday costs for Nigerians.

Angola has secured 25% of Chinese loans to Africa since 2000
Between 2000 and 2023, Africa received $182 billion in Chinese loans, primarily for energy and transportation development. Angola, with 25%, was the largest recipient; Ethiopia, Egypt, Nigeria, and Kenya followed. While 49 countries benefited, experts warn of increasing debt risks.

Africa’s World Bank debt reached $125 billion in 2022: Which country owes the most?
As of 2022, the top five African countries indebted to the World Bank — Nigeria, Egypt, Ethiopia, Kenya, and Tanzania — accounted for 46% of the continent's outstanding debt with the institution. Forty-eight African countries collectively owed around $125 billion, representing 31% of the total global debt of $408 billion. These are the top ten countries from 1970 to 2022.

India has been the World Bank's top debtor since 1970, owing $38.3 billion as of 2022
India has been the World Bank's largest debtor for over 50 years, with a debt of $38.3 billion as of 2022. Five Asian nations — India, Indonesia, Bangladesh, Pakistan, and China — owe a combined $111.2 billion, or 27% of the World Bank’s total debt. Nigeria, Africa's largest World Bank debtor, ranks 10th, with nearly #14 billion in debt.

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