An analysis by Nairametrics reveals that eleven states and the Federal Capital Territory (FCT) collectively increased their domestic debt stock by N373.06 billion over a nine-month period, spanning from December 2024 to September 2025.

Data sourced from the Debt Management Office (DMO) indicates that the total domestic debt for all 36 states and the FCT saw a modest rise from N3.97 trillion as of December 31, 2024, to N4.00 trillion as of September 30, 2025. This represents an aggregate increase of N34.84 billion, or 0.88%.

However, drilling down into the figures shows that 11 states and the FCT accounted for a combined increase of N373.06 billion during this period. Their total domestic debt escalated from N2.22 trillion in December 2024 to N2.59 trillion in September 2025, marking a significant 16.81% surge. This shift has notably altered the debt concentration pattern across the subnational entities.

Specifically, these 12 subnational entities held 55.94% of the total domestic debt at the close of 2024. By September 2025, their share had grown to represent 64.77% of the N4.00 trillion total.

Lagos State continues to hold the position of Nigeria’s largest subnational domestic debtor. The state's debt stock grew from N900.19 billion in December 2024 to N1.05 trillion in September 2025, an increase of N145.62 billion, equating to a 16.18% rise.

Other notable increases include Cross River, which expanded its domestic obligations by N23.81 billion, moving from N118.13 billion to N141.94 billion. Bauchi added N14.25 billion, taking its total from N143.95 billion to N158.20 billion, representing a 9.90% increase.

Borno recorded the highest percentage increase within this group. Its debt jumped from N27.91 billion to N47.23 billion, reflecting an increase of N19.31 billion or 69.19%.

The FCT's domestic debt also saw an increase, rising from N63.56 billion to N78.93 billion, which translates to a N15.37 billion increase or 24.19%.

Jigawa posted the smallest absolute increase, rising from N1.33 billion to N1.60 billion, an increase of N270.77 million or 20.37%.

In contrast to the increasing debt levels of these 11 states and the FCT, a larger group of 25 states reduced their debt stock between December 2024 and September 2025.

Imo significantly cut its debt, lowering it from N126.14 billion to N90.51 billion, a N35.64 billion reduction or 28.25%. Plateau trimmed N27.00 billion from its obligations, reducing its debt from N94.09 billion to N67.09 billion, representing a 28.70% decline. Akwa Ibom reduced its stock by N26.69 billion, moving from N122.19 billion to N95.51 billion, a 21.84% drop.

Bayelsa lowered its domestic debt from N82.72 billion to N58.73 billion, a reduction of N23.99 billion or 29.01%. Abia cut N17.58 billion, bringing its debt down from N66.08 billion to N48.50 billion, a 26.61% decline. Benue reduced its stock by N15.32 billion, while Gombe cut N13.56 billion. Sokoto lowered its debt by N8.33 billion, and Katsina reduced its obligations by N8.66 billion, representing a 33.72% decline.

These repayments and reductions have substantially offset the sharp increases recorded by the smaller group of states and the FCT, leading to only a marginal overall increase in subnational debt.