Collectively, states disbursed about N235.58bn on servicing external debt in H1 2025.
Nigerian states collectively encountered a staggering 68% increase in external debt service payments in the first half of 2025, placing extensive pressure on subnational finances.
In the period under review, total repayments climbed to approximately ₦235.58 billion, a significant jump from 2024 levels .
Top among the worst-hit was Rivers State, which saw repayments balloon to ₦26.34 billion, compared to just ₦4.62 billion in the first half of 2024—a surge exceeding 470% . Other major contributors included Kaduna State at ₦24.47 billion, up 6%, and Ogun State, nearing ₦12.57 billion, almost triple its previous figure . Edo State also featured heavily, with ₦10.18 billion, marking a 72.6% increase .
At the opposite end, Jigawa, Benue, and Yobe reported the lowest servicing bills—though still elevated—ranging between ₦1.3b–₦1.5 billion, all reflecting double-digit percentage increases year-on-year .
The steep rise reflects growing exchange-rate pressures and heightened foreign-loan exposure among states. It underscores looming fiscal sustainability concerns for subnational governments.