Emmanuel OchayiNigeria’s external debt continues to rise, with states facing increasing financial obligations to service their debts. In the first half of 2024, Nigerian states collectively spent about N139.92 billion on external debt servicing.
This figure represents a significant increase of 122% compared to the N63.06 billion spent during the same period in 2023.
Join our WhatsApp ChannelThis sharp rise is largely attributed to the devaluation of the naira, which has increased the cost of servicing external loans.
In this article, we will take a look at the top 15 Nigerian states with the highest external debt service costs in 2024.
1. Lagos State
Lagos, Nigeria’s commercial capital, had the highest external debt servicing costs in the first half of 2024. The state’s debt service payments increased from N16.88 billion in 2023 to N32.44 billion in 2024, reflecting a N15.56 billion, or 92.2%, increase. Lagos remains the most indebted state in Nigeria.
2. Kaduna State
Kaduna, an economic and political hub in northwestern Nigeria, witnessed a substantial increase in its external debt service costs, rising from N9.89 billion in 2023 to N23.08 billion in 2024. The N13.2 billion rise, or 133.4%, underscores the state’s growing financial strain due to external debt.
3. Cross River State
Cross River, famous for its beautiful landscapes and thriving tourism sector, recorded a significant increase in external debt servicing costs, from N2.21 billion in 2023 to N7.87 billion in 2024. The N5.66 billion jump, or 255.9%, is one of the largest increases recorded across Nigerian states in 2024.
4. Oyo State
Oyo State, a historically rich and agriculturally strong southwestern state, saw its external debt servicing costs rise from N2.61 billion in 2023 to N6.36 billion in 2024. The N3.75 billion, or 143.7%, increase highlights the growing debt burden on the state’s finances.
5. Bauchi State
Bauchi State, known for its agricultural and mineral resources, experienced an increase in external debt service payments, from N3.28 billion in 2023 to N6.33 billion in 2024. This represents a rise of N3.05 billion, or 92.8%, making it one of the states heavily burdened by debt servicing.
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6. Edo State
Edo State, with its rich historical legacy as the home of the ancient Benin Kingdom, faced a significant increase in debt service costs, rising from N2.4 billion in 2023 to N5.9 billion in 2024. This N3.49 billion jump, or 144.8%, places Edo among the top Nigerian states with the highest external debt servicing costs.
7. Rivers State
Rivers, an oil-producing state in the Niger Delta, saw its debt service costs rise from N1.76 billion in 2023 to N4.6 billion in 2024. The N2.85 billion, or 161.9%, increase highlights the state’s growing financial obligations in external debt servicing.
8. Ogun State
Ogun State, an industrial center in southwest Nigeria, experienced a sharp rise in debt servicing, from N1.57 billion in 2023 to N4.29 billion in 2024. This represents an increase of 172.5%, or N2.72 billion, demonstrating the impact of the naira devaluation on debt servicing costs.
9. Adamawa State
Adamawa, situated in northeastern Nigeria, is an agriculturally driven state with a focus on cattle farming. In the first six months of 2024, Adamawa’s external debt service costs increased by N1.6 billion, from N1.98 billion in 2023 to N3.57 billion in 2024. This marks an 80.7% rise.
10. Osun State
Osun State, located in Nigeria’s southwest, is recognized for its rich cultural heritage, including the famous Osun-Osogbo Festival. In 2024, the state’s external debt service costs rose to N3.4 billion from N1.57 billion in 2023. This increase of N1.83 billion, or approximately 116%, reflects the state’s growing debt burden.
11. Enugu State
Enugu, located in southeastern Nigeria, saw its debt servicing costs rise to N2.8 billion in 2024, up from N1.25 billion in 2023. This increase of 124% is due to the naira’s devaluation and rising international debt obligations.
12. Ekiti State
Ekiti State, known for its educational institutions, recorded external debt service costs of N3.1 billion in 2024, up from N1.45 billion in 2023. This marks a 113.8% rise in debt servicing costs.
13. Kano State
Kano, a major commercial hub in northern Nigeria, saw its external debt service costs rise to N4.8 billion in 2024, an increase from N2.2 billion in 2023. This 118% increase reflects the state’s growing financial obligations in foreign debt servicing.
14. Anambra State
Anambra, one of the most industrialized states in southeastern Nigeria, recorded external debt servicing costs of N2.9 billion in 2024, up from N1.7 billion in 2023, representing a 70.5% increase.
15. Plateau State
Plateau State, located in the North-Central region, experienced a rise in external debt servicing costs, from N1.98 billion in 2023 to N3.52 billion in 2024. This 77.7% increase places it among the states struggling with external debt payments.
The rise in external debt servicing costs across Nigerian states is a growing concern, with factors like the naira devaluation significantly impacting the amount spent.
States like Lagos, Kaduna, Cross River, and Edo are leading in external debt payments, and the trend shows no signs of slowing down. As states grapple with these increasing financial obligations, the impact on public spending and economic growth remains to be seen.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
