Nigerian states have collectively spent about N139.92 billion on servicing external debt in the first half of 2024.
This is according to an analysis of Federal Account Allocation Committee (FAAC) data from the National Bureau of Statistics (NBS).
The amount spent is an increase of 122% from the N63.06 billion spent in the same period last year.
According to the data, states have moved from spending around N9 billion monthly in 2023 to over N20 billion this year, which is more than double the debt service cost likely due to the naira devaluation.
Below are the top 10 Nigerian states with the highest external debt service costs in the first six months of 2024:
- Osun State
Osun State, located in Nigeria’s southwest, is culturally known for the Osun-Osogbo Festival. In 2024, Osun recorded N3.4 billion in external debt service costs, up from N1.57 billion in 2023. This represents an increase of N1.83 billion or about 116%.
- Adamawa State
In northeastern Nigeria, Adamawa is recognized for agriculture, especially cattle farming. The state’s external debt service cost increased by N1.6 billion, from N1.98 billion in 2023 to N3.57 billion in 2024, marking an 80.7% rise.
- Ogun State
Ogun, an industrial hub in southwest Nigeria, experienced a significant increase in external debt servicing, from N1.57 billion in 2023 to N4.29 billion in 2024, reflecting an increase of 172.5% or N2.72 billion.
- Rivers State
Rivers State, situated in the oil-rich Niger Delta, is known for being one of Nigeria’s wealthiest states due to its oil production. In 2024, the state’s external debt service costs rose to N4.6 billion, up from N1.76 billion in 2023, an increase of N2.85 billion or 161.9%.
- Edo State
Edo State, with its rich historical legacy as the home of the ancient Benin Kingdom, saw its external debt servicing costs rise from N2.4 billion in 2023 to N5.9 billion in 2024. This is a jump of N3.49 billion or 144.8%.
- Bauchi State
Known for its vast agricultural and mineral resources, Bauchi State witnessed an increase in debt service payments, rising from N3.28 billion in 2023 to N6.33 billion in 2024. This represents a N3.05 billion increase or 92.8%.
- Oyo State
Oyo, one of the key southwestern states with a rich history and a strong agricultural base, experienced an external debt service rise of N3.75 billion from N2.61 billion in 2023 to N6.36 billion in 2024, marking a 143.7% increase.
- Cross River State
Cross River, famed for its beautiful landscapes and thriving tourism industry, saw a dramatic increase in external debt servicing from N2.21 billion in 2023 to N7.87 billion in 2024. The N5.66 billion increase represents a 255.9% rise.
- Kaduna State
Kaduna, a strategic economic and political hub in northwest Nigeria, recorded a N13.2 billion increase in debt service costs, jumping from N9.89 billion in 2023 to N23.08 billion in 2024. This represents a 133.4% rise in external debt obligations.
- Lagos State
Lagos, Nigeria’s commercial capital, saw its external debt servicing rise significantly, from N16.88 billion in 2023 to N32.44 billion in 2024, an increase of N15.56 billion or 92.2%. This state is also the most indebted in Nigeria.
