States spent N455bn servicing foreign loans in 2025, new FAAC data shows

 

New data from the Federation Accounts Allocation Committee (FAAC), shows that Nigerian states paid N455.38 billion in foreign debt service in 2025, up from N362.08 billion in 2024. This represents a year-on-year increase of N93.30 billion, or 25.77 per cent.

The rise indicates that states devoted a larger portion of their FAAC allocations to external debt obligations in 2025, leaving less fiscal space for salaries, capital projects, and routine governance.

A closer look shows a concentration of foreign debt service among a few states. The top 10 states accounted for 68.57% of the total in 2025.

Lagos led with N92.80 billion, up from N72.32 billion in 2024 (28.33%).

Rivers followed with N48.58 billion, more than doubling from N23.13 billion in 2024 (110.02%).

Kaduna recorded N47.93 billion, up N2.34 billion (5.13%).

Ogun’s deductions more than doubled to N25.20 billion from N11.99 billion (110.22%).

Cross River: N21.01 billion, up 22.86% from N17.10 billion.

Oyo: N20.17 billion, a 12.98% increase from N17.85 billion.

Edo: N18.70 billion, up 11.78% from N16.73 billion.

Bauchi: N16.85 billion, up 22.58% from N13.75 billion.

Kano: N10.63 billion, up 24.67% from N8.53 billion.

Ebonyi: N10.37 billion, up 53.09% from N6.77 billion.