How Nigeria’s states are borrowing their way into crisis

Across Nigeria, many state governments are taking on record levels of debt to finance growth. Lagos leads that charge, but its rapid expansion is raising concerns about sustainability.

New data from BudgIT’s State of States 2025 report show that Lagos and Edo have the highest debt per capita, the average debt burden each citizen would bear if a state’s total debt were divided equally among its population. Both exceed N100,000, compared with the national average of N41,766.

Across Nigeria, many state governments are taking on record levels of debt to finance growth. Lagos leads that charge, but its rapid expansion is raising concerns about sustainability.

New data from BudgIT’s State of States 2025 report show that Lagos and Edo have the highest debt per capita, the average debt burden each citizen would bear if a state’s total debt were divided equally among its population. Both exceed N100,000, compared with the national average of N41,766.