The Federal Government has said that 33 states and the Federal Capital Territory, have reduced their debt profiles, having repaid about N1.85trn in domestic debt between June 2023 and December 2024.
This was contained in The Explainer magazine, a weekly publication of the National Orientation Agency, dated May 16th, 2025.
“Today, at least 33 states and the Federal Capital Territory (FCT) have reduced their domestic debt portfolios at an unprecedented rate. Thus, within a period of 18 months, spanning June, 2023 to December, 2024, these states have repaid a whooping total sum of N1.85 trillion to their creditors,” the publication read.
The NOA further disclosed that the 36 state governments and the FCT had accumulated a domestic debt stock of N1.66trn as of December 2014. By the end of 2015, their domestic debt profiles had risen to N2.5trn.
However, by June 30, 2023, the total domestic debt of the 36 states and the FCT had reached over N5trn,
“Thus, states such as Osun moved from a debt profile of N37.82 billion in 2014 to a whooping N145.71 billion in June, 2023 when President Tinubu assumed office. Delta, one of the highest receivers of FAAC allocations also moved from N211.95 billion debt in 2014 to N465.41 billion by 30 June, 2023.
“In the same vein, Jigawa sank from N1.57 billion debt in 2014 to N43.13 billion in June, 2023, while Imo went from N28.95 billion in 2014 to N220.84 billion in June, 2023. Anambra’s domestic debt surged from N2.88 billion in 2014 to N76.4 billion in June, 2023 and Sokoto moved from N7.65 billion only in 2014 to N91.68 billion in June 2023,” the publication further read.
The NOA explained that the Tinubu administration’s twin policies of ending petrol subsidy and floating the naira were “tremendous blessings to the states”, leading to a free up of revenues, with states witnessing a leap in federal allocations.
They added that while the states and Local Governments shared a total of N6.16 trillion in FAAC allocations in 2023, which was a 28.6 per cent increase from the N4.792 trillion they received in 2022, the allocations increased in 2024 to N9.58 trillion, N3.42 trillion higher than what they received in 2023, leading to the high debt repayment among the subnationals
The Agency also disclosed that of the 33 states, Delta, Lagos, Imo, Cross River and Ogun states top the list, with Delta repaying N265.83 billion, Lagos N96.23 billion, Imo N94.70 billion, Cross River N85.91 billion, and Ogun State N81.35 billion.
“However, there are only three states which failed to reduce their debt profiles. They are Niger, Enugu and Rivers States. Instead of following the footsteps of their colleagues, these states borrowed more. Thus, between June, 2023 and December, 2024, Niger State increased its debt burden by N18.79 billion. In the same vein, Enugu State borrowed additional N26.09 billion while Rivers State increased its debt by N138.89 billion within 18 months,” the NOA stated.
The Agency further stated that the Federal Government had expended more than $7 trillion (N11.2trn) in servicing its external debt within the first 18 months of the Tinubu administration, with the International Monetary Fund as the highest beneficiary of the FG’s debt repayment drive.
“As at June 30, 2023, a month after the president assumed office, Nigeria’s indebtedness to IMF stood at $3.264 billion. Six months after, specifically in December, 2023, Nigeria’s IMF debt had shrunk to $2.469 billion. One more year later (December, 2024), Nigeria has further reduced its indebtedness to IMF to only $800.23million. This $800.23 million balance at the end of 2024, has now been totally cleared in the second quarter of 2025 as confirmed by IMF. So, essentially in less than two years of Tinubu’s administration, Nigeria has paid off its entire $3.264 billion indebtedness to IMF.”
Among other debts repaid by the FG are the N22 trillion securitized Ways and Means arrears, the first N100 billion Sukuk bond offering issued in 2018, and N5.87 trillion in domestic debt paid off in 2024.
The Publication also noted that domestic debts had gulped the sum of N8.81 trillion in 18 months, while Nigeria’s total public debt stock “has dropped drastically from $113.42 billion as at June, 2023 to $94.22 billion as at December 31, 2024.”
