2024: Top 10 Nigerian states with highest external debt service costs

Nigerian states collectively have spent approximately N139.92 billion on servicing external debt in the first half of 2024, a substantial 122% increase compared to the N63.06 billion spent during the same period in 2023.

This data is in accordance to an analysis by the Federal Account Allocation Committee (FAAC) as reported by the National Bureau of Statistics (NBS).

The analysis shows that states went from paying around N9 billion monthly in external debt servicing in 2023 to over N20 billion monthly in 2024. This significant rise is likely tied to the devaluation of the naira.

Here are the top 10 Nigerian states with the highest external debt service costs for the first half of 2024:

10. Osun State

In 2024, Osun State in southwest Nigeria spent N3.4 billion on external debt servicing, a 116% increase from N1.57 billion in 2023, with an additional N1.83 billion in costs.

9. Adamawa State

In northeastern Nigeria, Adamawa saw its debt service rise by 80.7%, from N1.98 billion in 2023 to N3.57 billion in 2024, reflecting an increase of N1.6 billion.

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8. Ogun State

The industrial center of Ogun State experienced a 172.5% surge in external debt servicing, from N1.57 billion in 2023 to N4.29 billion in 2024—an increase of N2.72 billion.

7. Rivers State

Rivers State, an oil-rich region in the Niger Delta, saw debt service costs rise to N4.6 billion in 2024, up from N1.76 billion in 2023—an increase of N2.85 billion or 161.9%.

6. Edo State

Home to the historic Benin Kingdom, Edo’s external debt service payments increased by N3.49 billion, from N2.4 billion in 2023 to N5.9 billion in 2024, a 144.8% rise.

5. Bauchi State

Bauchi State, with its abundant agricultural and mineral resources, saw its debt payments rise by 92.8%, from N3.28 billion in 2023 to N6.33 billion in 2024—an increase of N3.05 billion.

4. Oyo State

Oyo State’s external debt service costs jumped by 143.7%, from N2.61 billion in 2023 to N6.36 billion in 2024, a N3.75 billion increase.

3. Cross River State

Cross River, a tourism hub, experienced a sharp rise in debt service costs, from N2.21 billion in 2023 to N7.87 billion in 2024—a 255.9% increase or N5.66 billion.

2. Kaduna State

In 2024, Kaduna State recorded an increase of N13.2 billion in debt payments, rising from N9.89 billion in 2023 to N23.08 billion, reflecting a 133.4% increase.

1. Lagos State

Lagos, Nigeria’s commercial hub, remained the most indebted state with debt service payments rising from N16.88 billion in 2023 to N32.44 billion in 2024—an increase of N15.56 billion or 92.2%.

 

NIGERIAN TRIBUNE