Nigeria’s state governments are accumulating increasing financial burdens on their citizens. According to the latest “State of States” report by BudgIT, the national average debt per citizen, the debt-per-capita, rose slightly from N40,469 in 2023 to N41,766 in 2024.
States with Highest Debt Burden
The report, titled ‘A Decade of Subnational Fiscal Analysis,’ revealed that 12 states exceeded the national average.
- Highest Debtors: Lagos and Edo states stood out significantly, with their debt-per-capita figures both surpassing N100,000.
- Other States Above Average: States including Kaduna, Cross River, Ogun, Ekiti, Bayelsa, Bauchi, Abia, Enugu, Ebonyi, and Adamawa also carried debt burdens higher than the N41,766 national average.
The metric’s increase implies that debt burdens are mounting due to additional liabilities amid current economic challenges. BudgIT noted that additional subnational liabilities (including contractor arrears, pension obligations, and judgment debts) totalled N1.24 trillion in 2024, up from N1.19 trillion in 2023.
Efforts to Reduce Debt Exposure
Despite the mounting burden, the report highlighted efforts by state governments to mitigate risk, particularly regarding foreign debt exposure to Naira volatility:
- Foreign Debt Repayment: The 35 reporting states (excluding Rivers) repaid over $200 million in foreign debts in the 2024 fiscal year. Lagos, Enugu, and Gombe states recorded the largest reductions.
- Domestic Debt Repayment: On the domestic front, states repaid over N2 trillion. Notably, Lagos, Cross River, and Delta states each cut their domestic debt by over N100 billion.
Call for Accountability
Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, emphasised that borrowing itself isn’t the problem, but “unproductive accumulation of debt is the problem.” He urged citizens to hold state governments accountable for the borrowed funds, stating: “Beyond the dividends of democracy, you must demand value for the taxes paid.”
