10 States Add ₦417bn in Debt Despite Higher FAAC Allocations
Ten Nigerian states increased their domestic debt by ₦417.7bn year-on-year to ₦1.3tn in Q1 2025, despite receiving higher federal allocations. States like Enugu, Taraba, and Rivers led the surge, raising concerns over fiscal discipline.
Enugu posted a 128.4% rise, while Taraba’s debt jumped 154.1%. In contrast, Gombe and Edo showed slight debt reductions. Experts warn the borrowing trend threatens long-term fiscal stability, especially for states heavily reliant on federal allocations and with weak internally generated revenue.
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