Twelve state governors whose tenures will end in 2027 and early 2028 are set to leave behind a combined debt burden of about N5.3 trillion, according to data from the Debt Management Office.
The affected states are Adamawa, Yobe, Nasarawa, Kwara, Ogun, Gombe, Bauchi, Lagos, Borno, Oyo, Imo and Bayelsa.
The DMO data showed that the 12 states had a combined domestic debt of N2.16 trillion as of the first quarter of 2026, while their external debt stood at about $2.33 billion.
Lagos recorded the highest domestic debt at N1.205 trillion, while Nasarawa had the lowest at N27.15 billion. Lagos also had the highest external debt at $1.174 billion.
The debt situation varied across the states, with some governors reducing domestic or external obligations, while others increased their states’ liabilities.
In Oyo State, Governor Seyi Makinde reduced domestic debt from N94.14 billion when he assumed office to N69.8 billion as of the first quarter of 2026. The state’s external debt also fell from $136.53 million to $87.5 million.
In Bayelsa, Governor Douye Diri reduced domestic debt from N147.93 billion to N50.17 billion, while external debt declined from $59.55 million to $55.5 million.
Adamawa, Nasarawa, Imo and Gombe also recorded reductions in domestic debt, although some of the states saw increases in their external obligations.
Economists said borrowing was not necessarily harmful if the funds were invested in productive projects capable of generating revenue and improving economic activity.
They, however, warned that excessive borrowing, particularly foreign-denominated debt, could put additional pressure on state finances as the naira depreciates.
The combined debt burden could rise further if the affected states take on additional loans before the governors leave office.
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