Lagos, 5 other South-West states contribute 34% to overall N3.97trn domestic debt in 2024
Lagos, and four other South-West states contributed N1.35 trillion or 34.1 per cent of the overall N3.97 trillion domestic debt in 2024, according to the latest data by Debt Management Office (DMO).
The other South-West states are: Oyo, Ogun, Osun, Ekiti, and Ondo States.
The six South-West states in the country’s domestic debt profile was at N1.81 trillion in 2023, about 30.94per cent of the overall N5.86 trillion borrowed by all 36 states, including the FCT.
It simply means that the six geo-political region in the country domestic debt profile dropped by 25 per cent to N1.35 trillion in 2024, from N1.81 trillion in 2023.
Analysts have attributed the slowdown to states domestic debt profile to President Bola Tinubu increasing allocation to State governments, among other factors.
Several Nigerian states have reported a decline in debt due to various factors, including improved revenue generation, better fiscal management, and strategic debt repayment efforts. In 2024, all the South-West states saw a reduction in their domestic debt stock, marking an improvement from the previous quarter.
The report by DMO revealed that Lagos, followed by Rivers are the highest indebtedness states in the country with Jigawa State the lowest.
The breakdown of the South-West states domestic debt in 2024 showed that Lagos debt profit stood at N900.19 billion, up by 14.2per cent from N1.05 trillion in 2023.
Lagos State with the highest debt profile in Nigeria is due economic size & infrastructure development, high population & demand for services As Nigeria’s commercial hub,
Lagos invested heavily in infrastructure, transportation, and urban development, leading to significant borrowing. With a population exceeding 20 million, Lagos requires substantial funding for healthcare, education, and public services.
Despite its high debt, Lagos remains financially strong due to its revenue streams and economic activities.
Lagos was followed by Ogun state with a domestic debt of N211.86 billion in 2024, representing a decline of 24per cent from N 278.7billion in 2023.
Oyo state in the third position with N89.9 billion domestic debt in 2024, a decline of 43.8 per cent from N159.9 billion in 2023, while, Osun came fourth with N84.3 billion domestic debt, about 41.7 per cent drop from N144.6 billion in 2023.
Ekiti on the fifth position with N53.5 billion domestic debt in 2024, about 51.6 per cent decline from N110.5 billion as Ondo with the lowest of all the southwest states with about N12.9 billion domestic debt in 2024, 82 per cent decline from N71.5 billion reported by DMO in 2023.
