FCT, Seven Other States Add ₦355bn to Domestic Debt in Three Months

Seven states and the Federal Capital Territory (FCT) increased their domestic debt by a combined ₦355.18 billion between December 2025 and March 2026.

The affected jurisdictions are the FCT, Edo, Borno, Yobe, Benue, Kaduna and Nasarawa.

According to the Debt Management Office (DMO), the FCT recorded the largest increase.

Its domestic debt rose from ₦188.86 billion to ₦389.88 billion, representing an increase of ₦201.01 billion or 106.43 per cent.

Edo followed, with its debt rising from ₦91.18 billion to ₦172.37 billion, an increase of ₦81.19 billion.

Borno’s domestic debt also more than doubled, increasing by ₦45.80 billion.

Yobe recorded an increase of ₦17.60 billion, while Benue, Kaduna and Nasarawa added ₦5.62 billion, ₦3.22 billion and ₦743.55 million respectively.

However, the increase was not recorded across all states.

Twenty-nine states reduced their domestic debt during the period, while Jigawa’s debt remained unchanged.

Overall, the domestic debt of Nigeria’s 36 states and the FCT rose from ₦4.36 trillion in December 2025 to ₦4.52 trillion in March 2026.

This represents a net increase of ₦163.25 billion.

The development has attracted attention because state governments received higher allocations from the Federation Account during the same period.

The 36 states received about ₦2.49 trillion in FAAC allocations in the first quarter of 2026, compared with approximately ₦1.98 trillion during the corresponding period in 2025.

Despite the increased revenue, some states recorded significant rises in their outstanding domestic obligations.

The DMO, however, cautioned that an increase in debt stock does not necessarily mean a state obtained a fresh loan.

Debt can also increase through drawdowns from existing facilities and other adjustments to outstanding obligations.

Kaduna, for instance, recorded a ₦3.22 billion increase despite previous assurances by the state government that it had not taken a new loan.

The government explained that the increase was linked to drawdowns from facilities secured by previous administrations.

Meanwhile, several states reduced their domestic debt.

Delta’s debt fell by ₦34.98 billion, while Enugu recorded a ₦37.57 billion reduction, the largest decline among the states.

Lagos remained Nigeria’s most indebted state despite reducing its domestic debt from ₦1.219 trillion to ₦1.205 trillion.

The figures highlight significant differences in the financial positions of Nigeria’s sub-national governments.

While some states are reducing their liabilities, others are recording substantial increases.

Economists have stressed that borrowing is not necessarily harmful when the funds are invested in productive projects capable of generating economic returns.

The latest figures are expected to fuel further debate over how states are managing increased federal allocations and whether rising debt is translating into infrastructure, economic growth and improved public services.