As of June 30, 2026, Lagos State has been identified as the most indebted state in Nigeria, with a staggering domestic debt of N1.20 trillion. This information was revealed in a report by the Debt Management Office (DMO), which highlighted that the total domestic debt of Nigeria's 36 states and the Federal Capital Territory (FCT) stands at N4.59 trillion.

The DMO's data indicates that Lagos State's debt constitutes a significant portion of the total domestic debt owed by subnational governments. Following Lagos, Delta State ranks second with a domestic debt of N369.30 billion, while Rivers State comes in third with N354.64 billion. The FCT is also among the top four indebted regions, holding a debt of N358.79 billion.

The report further details that the federal government possesses the majority of the country's domestic debt, amounting to N87 trillion, which is part of a total public debt of N166.79 trillion. This means that the combined debt of the states and the FCT represents only 2.75% of Nigeria's overall public debt.

Other states with notable domestic debts include Edo State at N214.93 billion, Ogun State with N189.05 billion, and Bauchi State at N157.35 billion. The top ten states with the highest domestic debts also feature Niger, Cross River, and Benue, with debts of N140 billion, N130.01 billion, and N112.32 billion, respectively.

In contrast, Jigawa State recorded the lowest domestic debt among all states, with several others owing less than N20 billion. This stark contrast highlights the financial disparities among the states and raises questions about fiscal management and economic strategies across the nation.

The DMO's report underscores the pressing need for states to implement effective debt management strategies to ensure sustainable economic growth and development. As Lagos continues to lead in domestic debt, stakeholders are urged to pay attention to the implications of such financial burdens on the state's future economic stability.