Oil-producing states reduced their domestic debt burden by about N610.84bn between June 2023 and March 2025, as they received record inflows from the 13 per cent derivation fund, The PUNCH reports.
The analysis is based on the most recent subnational domestic debt reports from the Debt Management Office, as the figures for the second quarter of 2025 have not yet been published.
In June 2023, the combined domestic debt of the nine oil-producing states stood at N1.66tn, representing 28.6 per cent of the country’s total subnational debt of N5.82tn.
By March 2025, the collective debt had fallen to N1.05tn, accounting for 27.2 per cent of Nigeria’s total state-level debt of N3.87tn.
Delta State, traditionally one of the largest recipients of derivation, cut its domestic debt from N465.40bn in June 2023 to N204.72bn in March 2025, a decline of over 55 per cent.
Akwa Ibom also reduced its loans by more than 40 per cent, dropping from N199.58bn to N118.21bn in the same period. Bayelsa, another top derivation earner, brought its debt down from N134.50bn to N73.53bn, while Imo reduced from N220.83bn to N122.09bn.
