Nigerian states collectively paid N455.38bn to service foreign loans in 2025, according to figures released by the Federation Accounts Allocation Committee and analysed from National Bureau of Statistics data.
The payments represent deductions made from statutory revenue allocations to states for the repayment of external debt obligations. These figures were made available as part of subnational revenue data compiled for 2025.
The total foreign debt service of N455.38bn in 2025 was higher than the N362.08bn recorded for 2024. This reflects an increase of N93.30bn in foreign loan payments by states year‑on‑year.
The pattern of monthly foreign debt service in 2025 showed some variation. States’ total deductions for foreign loan repayments were N40.09bn in January, then decreased to N39.10bn in February. The amount remained at N39.10bn for March through July.
In August, deductions fell to N36.14bn, a level that persisted through September, October, November, and December.
The foreign debt service totals form part of the first‑line charges automatically deducted from states’ revenue allocations before funds are released for other uses.
Analysis of state data shows that the top 10 states accounted for about 68.57 per cent of the total foreign debt service in 2025. Lagos State had the largest share with N92.80bn deducted, followed by Rivers with N48.58bn and Kaduna with N47.93bn.
Other states in the top 10 for foreign debt service included Ogun with N25.20bn, Cross River with N21.01bn, Oyo with N20.17bn, Edo with N18.70bn, Bauchi with N16.85bn, Kano with N10.63bn, and Ebonyi with N10.37bn.
States outside the top 10 also recorded multi‑billion‑naira foreign debt service deductions, reflecting that most subnational governments have external loan obligations.
