Nigeria’s Bottom 12 States by External Debt as of June 30, 2025

New data on Nigeria’s subnational external debt profile has revealed the 12 states with the lowest foreign debt burdens as of June 30, 2025. The figures, sourced from official debt reports, show significant disparities in external borrowing among states, with some maintaining notably low exposure to foreign creditors.

According to the latest breakdown, Yobe State ranks as the least indebted, with an external debt of $23.08 million, closely followed by Benue State at $23.41 million and Jigawa State at $24.51 million. These three states make up the lowest tier of Nigeria’s external debt holders.

Other states on the list include Zamfara ($30.12 million), Taraba ($33.31 million), Plateau ($37.29 million), and Gombe ($38.79 million). Despite their unique economic and security challenges, these states have maintained relatively modest foreign debt levels.

In the southern part of the country, Akwa Ibom appears on the list with $40.35 million, while Kwara records $49.88 million in external debt.

Rounding out the bottom 12 are Sokoto ($52.21 million), Kebbi ($52.43 million), and Kogi, which has the highest external debt within the low-debt group at $55.35 million.

Analysts say the variations in external debt levels reflect differences in borrowing strategies, revenue capacities, development priorities, and access to concessional funding across states.

While lower debt can signal prudent financial management, experts caution that it may also indicate under-investment in critical infrastructure or limited access to credit.

The report provides insight into subnational fiscal health as state governments continue to balance economic pressures, debt servicing obligations, and developmental needs in 2025.