The Federal Government announced that 33 states and the Federal Capital Territory (FCT) have successfully reduced their debt levels, repaying approximately N1.85 trillion in domestic debt between June 2023 and December 2024.
This information was published in The Explainer magazine, a weekly release from the National Orientation Agency (NOA), dated May 16, 2025.
“Currently, at least 33 states and the FCT have decreased their domestic debt portfolios at an unprecedented pace. Over 18 months—from June 2023 to December 2024—these states have collectively repaid a staggering N1.85 trillion to creditors,” the magazine stated.
The NOA further revealed that as of December 2014, the 36 states and the FCT had a combined domestic debt of N1.66 trillion, which rose to N2.5 trillion by the end of 2015. By June 30, 2023, their total domestic debt had exceeded N5 trillion.
“For example, Osun State’s debt grew from N37.82 billion in 2014 to N145.71 billion by June 2023, when President Tinubu took office. Delta State, a major recipient of FAAC allocations, increased its debt from N211.95 billion in 2014 to N465.41 billion by June 2023.
Similarly, Jigawa’s debt rose from N1.57 billion in 2014 to N43.13 billion by June 2023, Imo State from N28.95 billion to N220.84 billion, Anambra from N2.88 billion to N76.4 billion, and Sokoto from N7.65 billion to N91.68 billion in the same period,” the publication added.
The NOA credited the Tinubu administration’s policies—ending the petrol subsidy and floating the naira—with significantly boosting state revenues, enabling increased federal allocations.
In 2023, states and local governments shared N6.16 trillion in FAAC allocations, a 28.6% rise from N4.792 trillion in 2022. This amount further increased to N9.58 trillion in 2024, an additional N3.42 trillion, which contributed to the substantial debt repayments by subnational entities.
Among the 33 states that reduced their debts, Delta, Lagos, Imo, Cross River, and Ogun states led the repayments, with Delta repaying N265.83 billion, Lagos N96.23 billion, Imo N94.70 billion, Cross River N85.91 billion, and Ogun N81.35 billion.
However, three states—Niger, Enugu, and Rivers—did not reduce their debts; instead, they borrowed more. Between June 2023 and December 2024, Niger State increased its debt by N18.79 billion, Enugu by N26.09 billion, and Rivers by N138.89 billion, the NOA reported.
The Agency also disclosed that the Federal Government spent over $7 trillion (N11.2 trillion) servicing its external debt within the first 18 months of President Tinubu’s administration, with the International Monetary Fund (IMF) being the largest beneficiary.
“As of June 30, 2023, a month after President Tinubu assumed office, Nigeria owed the IMF $3.264 billion. By December 2023, this had decreased to $2.469 billion, and by December 2024, the debt was further reduced to $800.23 million. The remaining balance was fully cleared in the second quarter of 2025, as confirmed by the IMF. In less than two years, Nigeria has repaid its entire $3.264 billion debt to the IMF.”
Other notable repayments by the Federal Government include N22 trillion in securitized Ways and Means arrears, the first N100 billion Sukuk bond issued in 2018, and N5.87 trillion in domestic debt paid off in 2024.
The publication noted that domestic debts totalled N8.81 trillion repaid over 18 months, while Nigeria’s total public debt declined significantly from $113.42 billion in June 2023 to $94.22 billion by December 31, 2024.
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