Four Nigerian states slash domestic debt by over 20% in H1 2026, Enugu leads with 52.73% cut

Enugu, Jigawa, Ondo and Zamfara states reduced domestic debt by more than 20% each between December 2025 and June 2026, according to Nairametrics analysis of DMO data. Enugu recorded the deepest cut at 52.73%, lowering its debt from N157.60 billion to N74.51 billion—a decline of N83.10 billion. Jigawa fell 34.71% (N1.60bn to N1.04bn), Ondo 26.82% (N8.42bn to N6.16bn), and Zamfara 20.86% (N57.04bn to N45.14bn). Combined, the four states' debt stock dropped from N224.66 billion to N126.85 billion—a N97.81 billion reduction (43.53%) in just six months.

The pace accelerated in Q2 2026, driven by Enugu's second-quarter slash of 37.93% (N45.52 billion) after a 23.84% Q1 reduction. Jigawa's entire decline came in Q2, while Ondo and Zamfara showed steadier quarterly patterns. Notably, Enugu's N83.10 billion cut accounted for nearly 85% of the total reduction across the four states.

Meanwhile, 26 states decreased debt but 10 states plus the FCT increased borrowing—most sharply in Edo (+135.72%), FCT (+89.98%), and Borno (+70.52%). This divergence shows subnational fiscal positions can shift dramatically within half a year based on repayment capacity and new borrowing decisions.

What does this debt split between states reveal about differing fiscal management approaches, and should citizens monitor their state's debt trajectory as an indicator of future public service stability or tax implications?

SOURCE: https://nairametrics.com/2026/09/30/enugu-leads-as-4-states-cut-domestic-debt-by-over-20-in-h1-2026/