The Federal Government and 33 states, including the Federal Capital Territory (FCT), have repaid over ₦13 trillion in domestic and external debts between June 2023 and December 2024, according to the National Orientation Agency (NOA).
The revelation was made in the latest edition of The Explainer, the NOA’s weekly publication dated May 16, 2025. The report highlights what it calls “an unprecedented reduction” in domestic debt portfolios across most subnational governments, as well as significant repayments of external loans by the Federal Government.
“Within a period of 18 months, spanning June 2023 to December 2024, 33 states and the FCT have repaid a total of ₦1.85 trillion in domestic debts,” the NOA stated.
It added that during the same period, the Federal Government paid over $7 trillion (₦11.2 trillion) in external debt servicing, including fully clearing Nigeria’s $3.264 billion debt to the International Monetary Fund (IMF) by the second quarter of 2025.
The NOA attributed this fiscal turnaround to the Tinubu administration’s economic reforms, particularly the removal of petrol subsidy and the liberalization of the naira exchange rate. These measures reportedly led to increased federal revenue, which boosted allocations to states and local governments.
“The states and LGAs received ₦6.16 trillion in FAAC allocations in 2023 — a 28.6% increase from 2022. This figure jumped to ₦9.58 trillion in 2024, enabling many states to pay off significant portions of their debts,” the Agency said.
States leading in repayments include Delta (₦265.83bn), Lagos (₦96.23bn), Imo (₦94.70bn), Cross River (₦85.91bn), and Ogun (₦81.35bn).
However, the publication noted that three states — Niger, Enugu, and Rivers — increased their debt burdens instead. Niger added ₦18.79 billion, Enugu ₦26.09 billion, and Rivers ₦138.89 billion during the same 18-month period.
The report also traced Nigeria’s growing debt profile from 2014, when state domestic debt stood at ₦1.66 trillion. By June 2023, it had exceeded ₦5 trillion, with states like Osun, Delta, Jigawa, Imo, Anambra, and Sokoto showing drastic increases in debt stock.
On the federal front, the publication noted major repayments including: ₦22 trillion in securitized Ways and Means arrears, ₦100 billion Sukuk bond issued in 2018, ₦5.87 trillion in domestic debt repayments in 2024
In total, domestic debt repayments consumed ₦8.81 trillion over 18 months. The country’s total public debt stock has dropped sharply from $113.42 billion in June 2023 to $94.22 billion as of December 31, 2024.
The NOA commended the fiscal discipline exercised by most states and federal authorities, describing the debt repayment trend as “a major win for Nigeria’s economic recovery and long-term financial stability.”
