External debt for 32 Nigerian states and the Federal Capital Territory increased by $944.12 million in 2025. Data from the Debt Management Office, analysed by Nairametrics, shows the combined rise in foreign loans obtained by the subnational governments. The figure reflects new borrowings taken on during the year. No breakdown of individual state allocations or specific project purposes was provided in the report. The DMO did not comment on the terms or repayment plans for the loans.
Thirty-two states and the FCT took on nearly a billion dollars in fresh foreign debt while many struggle to pay existing obligations. Some of these governments face difficulties meeting salary payments despite accessing large loans. Nigerians in these states may see tighter budgets or delayed projects if debt servicing consumes increasing shares of revenue. The lack of transparency on how the funds will be used raises concerns among taxpayers.
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