Nigeria’s subnational debt profile witnessed a big shift in 2024, as new knowledge revealed that the mixed debt inventory of the 36 states declined by a large 32.32% year-on-year, falling from N5.86 trillion in 2023 to N3.97 trillion in 2024.
The contraction indicators a renewed focus by a number of state governments on debt sustainability, budgetary self-discipline, and different financing fashions amid rising fiscal pressures.
Nonetheless, regardless of this broad-based decline, some states stay deeply entrenched within the nation’s debt panorama, both on account of current monetary obligations or a strategic push for infrastructure-led progress.
Right here’s a breakdown of the highest 10 states with the best public debt inventory in 2024 and the way they evaluate year-on-year.
Prime 10 Most Indebted Nigerian States in 2024
Enugu bucked the development with a 29.36% debt improve from N92.21 billion in 2023, pointing to ramped-up borrowing within the present fiscal 12 months, defying the nationwide downtrend. This may be attributed to a mixture of formidable funds growth and aggressive borrowing.
The spike is tied to the state’s expansionary 2024 funds of N521.5 billion—an formidable 132% improve over the prior 12 months—underneath Governor Peter Mbah’s “Price range of Disruptive Financial Development,” Over 80% of the funds (N414.3 billion) was earmarked for capital tasks spanning roads, sensible faculties, healthcare facilities, water infrastructure, and energy.
Regardless of concentrating on N300 billion in IGR, Enugu’s technique nonetheless relied closely on borrowing: N71 billion in home loans and N32.75 billion from overseas sources. Whereas the state hopes these investments will drive long-term progress, analysts are elevating considerations concerning the tempo of borrowing, fiscal transparency, and debt sustainability.
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