**Lagos in the Lead as 10 States Owe N2.68tn: What's Behind the Numbers?** As Nigeria continues to grapple with rising public debt pressures, it's becoming increasingly clear that the problem isn't limited to the federal government. New data from the Debt Management Office (DMO) reveals that 36 states and the Federal Capital Territory (FCT) collectively owe a staggering N4.002 trillion in domestic and external debt as of September 30, 2025. This figure represents a significant 2.61% of the country's total public debt stock of N153.29 trillion. While this may not seem like a lot, it's worth noting that 10 states are responsible for a whopping 67% of this subnational debt. Lagos State takes the top spot, with a debt profile of N1.045 trillion – roughly 26% of the total debt stock of all 36 states and the FCT combined. So, what's behind Lagos' massive borrowing? The answer lies in the state's aggressive infrastructure expansion strategy, which includes investments in transportation, housing, and urban renewal. As the commercial nerve centre of the country, Lagos is driven to keep pace with the demands of its growing population and economy. But what about the other states on the list? Rivers, Delta, Enugu, Ogun, and Bauchi are also among the top 10, with debt stocks ranging from N381.205 billion to N158.197 billion. While some of these states have relatively stronger internally generated revenues, they're still struggling to manage their debt obligations. The concentration of debt among these states raises concerns about sustainability, particularly in the face of exchange rate volatility, rising interest costs, and slower revenue growth. Analysts warn that weak fiscal buffers and heavy reliance on federal allocations could heighten refinancing risks. While the immediate systemic risk may appear contained, the uneven distribution of liabilities and varying revenue capacities among states suggest that fiscal stress could deepen in specific regions if macroeconomic headwinds persist. As Nigeria continues to navigate its debt challenges, it's essential to address the root causes of subnational debt and develop a more sustainable fiscal framework.