₦13 Trillion Gone! FG And States In Record-Breaking Debt Repayment Spree

The Federal Government has revealed that 33 states and the Federal Capital Territory (FCT) have significantly reduced their debt burdens, repaying approximately ₦1.85 trillion in domestic debt between June 2023 and December 2024.

This development was reported in the May 16, 2025 edition of The Explainer, a weekly publication of the National Orientation Agency (NOA).

“Currently, at least 33 states and the FCT have cut down their domestic debt portfolios at a historic rate. Over an 18-month span—from June 2023 to December 2024—these states collectively repaid a staggering ₦1.85 trillion,” the report stated.

The NOA highlighted that in 2014, the total domestic debt of Nigeria’s 36 states and the FCT stood at ₦1.66 trillion, which rose to ₦2.5 trillion by the end of 2015. However, by June 30, 2023, their cumulative domestic debt had surged past ₦5 trillion.

The publication cited examples of skyrocketing debt over time. For instance:

• Osun State moved from ₦37.82 billion in 2014 to ₦145.71 billion in June 2023.

• Delta State’s debt rose from ₦211.95 billion in 2014 to ₦465.41 billion.

• Jigawa State escalated from ₦1.57 billion to ₦43.13 billion.

• Imo State jumped from ₦28.95 billion to ₦220.84 billion.

• Anambra State grew from ₦2.88 billion to ₦76.4 billion.

• Sokoto State expanded from ₦7.65 billion to ₦91.68 billion.

According to the NOA, two major policies under the Tinubu administration—removal of fuel subsidy and the floating of the naira—have significantly increased federal revenue, leading to improved allocations to states.

In 2023, states and local governments received ₦6.16 trillion in FAAC allocations—a 28.6% increase from ₦4.792 trillion in 2022. By 2024, that figure further surged to ₦9.58 trillion, allowing for record-level debt repayments across most subnationals.

Among the top-performing states in debt repayment are:

• Delta State: ₦265.83 billion

• Lagos State: ₦96.23 billion

• Imo State: ₦94.70 billion

• Cross River: ₦85.91 billion

• Ogun State: ₦81.35 billion

However, three states—Niger, Enugu, and Rivers—increased their debt burdens during the period:

• Niger State: ₦18.79 billion rise

• Enugu State: ₦26.09 billion rise

• Rivers State: ₦138.89 billion rise

The NOA also disclosed that the Federal Government has paid over $7 trillion (₦11.2 trillion) in external debt servicing within the first 18 months of President Tinubu’s tenure. The International Monetary Fund (IMF) was the primary recipient of these repayments.

As of June 30, 2023, Nigeria owed the IMF $3.264 billion. By December 2023, the figure had dropped to $2.469 billion, and by December 2024, it was further reduced to $800.23 million—which was fully repaid in Q2 of 2025.

Other debts settled by the FG include:

• The ₦22 trillion securitized Ways and Means advances

• The first ₦100 billion Sukuk bond issued in 2018

• ₦5.87 trillion in domestic debts cleared in 2024

Overall, domestic debt repayments alone consumed ₦8.81 trillion over 18 months, while the country’s total public debt stock dropped from $113.42 billion (June 2023) to $94.22 billion (December 2024).