As of June 30, 2024, the combined debt of Nigeria's 36 states rose to N11.47 trillion, reflecting a 14.57% increase from N10.01 trillion in December 2023. This debt surge occurred despite federal allocations through the Federal Accounts Allocation Committee (FAAC) and each state’s internally generated revenue (IGR).

Data from the Debt Management Office (DMO) reveals that external debt for the states and the Federal Capital Territory (FCT) grew from $4.61 billion to $4.89 billion over this period. In naira terms, the foreign debt component rose by 73.46%, from N4.15 trillion to N7.2 trillion, largely due to the naira’s devaluation from N899.39/$1 in December 2023 to N1,470.19/$1 by mid-2024.

On the other hand, domestic debt for the states and FCT decreased from N5.86 trillion to N4.27 trillion. Altogether, states and the FCT accounted for 10.29% of Nigeria’s total public debt, which stood at N134.3 trillion in June 2024.