Despite rising revenues, an analysis by THE WHISTLER has revealed that 29 states borrowed more than N1tn from various sources within six months.
The period covered by the report is January to June 2026, representing the first half of the year. Four states did not take any loans during the period under review, while the loan portfolios of three other states could not be ascertained as of the time of filing this report due to the absence of credible data.
There have been consistent claims of increased revenue to states from federal allocations over the last three years. The Federal Government has claimed that states’ revenues have doubled since the removal of the fuel subsidy in May 2023.
An analysis of budget performance documents showed that Bauchi State’s Federation Accounts Allocation Committee (FAAC) allocations stood at N123bn at the end of 2023. The figure increased to N183bn in 2024 and rose further to N315bn in 2025. Between January and June 2026, the state received N140bn in FAAC allocations.
Similarly, Kogi State received N92.1bn in FAAC allocations in 2023. The amount increased to N127bn in 2024 and N270bn in 2025. Between January and June 2026, the state received N115bn in federal allocations.
The findings come amid calls for states to reduce their reliance on loans to finance their fiscal needs.
Oyo State borrowed N164bn in three months, according to data published in its budget performance document for the first quarter of the 2026 fiscal year. However, a review showed that the state did not disclose how much it borrowed as of the end of June 2026, as its half-year budget performance document failed to capture the figure.
Ondo State borrowed N35.2bn within six months, with the entire amount sourced from international lenders.
Ekiti State borrowed N5.1bn from international sources between January and June 2026.
Ebonyi State recorded loans of N28.3bn in the first half of 2026, comprising N20bn from domestic lenders and N8.3bn from international sources.
Enugu State borrowed N23bn within six months, all from international lenders.
Imo State borrowed N13.2bn, which it recorded as an international loan, while Kogi State borrowed N95.8bn. Of the Kogi loan, N75bn came from international sources, while N20.8bn was sourced domestically.
Kwara State borrowed N14.6bn, which it recorded as an international loan. Nasarawa State recorded the lowest borrowing figure among the states reviewed, with N259m obtained from domestic lenders.
Plateau State also borrowed N16.4bn from international sources.
Kano State borrowed N5.2bn within six months, recording the entire amount as an international loan.
Kaduna State’s borrowing stood at N9.1bn within the period, all of which was recorded as an international loan. Sokoto State borrowed N20.4bn, also from international sources.
Jigawa State’s loan portfolio grew by N18.2bn between January and June 2026, with the money sourced from international lenders. Katsina State borrowed N15.2bn, also recorded as an international loan.
Other states, including Adamawa, borrowed N40bn from domestic lenders.
Zamfara State obtained N7.9bn entirely from international sources, while Borno State borrowed N79.2bn within six months. Of this amount, N69bn came from domestic lenders, while international lenders provided N10.2bn.
The Yobe State Government recorded N34.7bn as the amount borrowed between January and June 2026, according to its half-year budget performance document.
Bauchi State recorded the highest loan portfolio within the six months reviewed, with N166.6bn borrowed. International lenders provided N75.9bn, while domestic lenders accounted for N90.7bn.
Abia State borrowed N28.9bn between January and June 2026, comprising N12.1bn from domestic sources and N16.8bn from international sources.
For Edo State, only the borrowing figure for the first quarter of 2026 was available as of the time of filing this report. The breakdown showed that N46.7bn was borrowed from domestic lenders during the period.
Other states included Taraba, which borrowed N90.3bn, comprising N83.4bn in domestic loans and N6.9bn in international loans.
Gombe State borrowed N13.2bn from international lenders, while Niger State borrowed N73.2bn, of which N18.8bn came from domestic lenders and N54.3bn from international sources.
Ogun State borrowed N14.7bn, Lagos State N9.8bn, and Cross River State N295m.
Delta, Anambra, Kebbi and Bayelsa states did not borrow any money between January and June 2026, based on the budget performance documents reviewed for this report.
The budget performance documents of Osun and Rivers states were not accessible as of the time of filing this report, while Akwa Ibom State published only an abridged version of its half-year 2026 budget performance document, which did not capture its loan portfolio.
While States Turn To Foreign Lenders, DMO Data Paints Dim Picture Of Debt Portfolio
While Nigerian states continue to obtain fresh loans, data published by the Debt Management Office (DMO) on their total debt positions paints a dim picture of their indebtedness. The data also show that many states are borrowing from international sources, preferring them to domestic lenders.
Data reviewed for this report showed that, on the domestic front, Adamawa State’s debt portfolio stood at N102.3bn as of the end of June 2026, while Bauchi’s stood at N157.3bn and Delta’s at N369bn.
Other states included Edo, with N214bn; Oyo, N66.4bn; Yobe, N96bn; Imo, N79.5bn; Kaduna, N87.2bn; Akwa Ibom, N8.5bn; Borno, N72.7bn; and Kwara, N51bn.
Lagos State’s domestic debt stood at N1.1tn, while Ogun was listed at N89bn and Rivers at N354bn. Taraba’s domestic debt stood at N96bn, Niger’s at N139bn, Kogi’s at N51.6bn, Zamfara’s at N45.1bn, and Sokoto’s at N75.8bn.
On the external front, DMO data as of the end of June showed that Adamawa State owed $159.8m, Anambra $100.8m, Bauchi $265m, Borno $102.5m, Cross River $223m, Ekiti $172.6m, Kaduna $735.5m, Kano $239m, Niger $183m, Sokoto $113m, Lagos $1.2bn, Oyo $108m, and Edo $350m.
Other states included Gombe, with external debt of $144m; Imo, $109m; Kebbi, $93m; Katsina, $240m; Abia, $133.5m; Zamfara, $65.1m; and Enugu, $141m.