By Peter Omopo
The Federal Government, along with 33 states and the Federal Capital Territory (FCT), has repaid over N13 trillion in domestic debt between June 2023 and December 2024, according to a new report by the National Orientation Agency (NOA).
The update was published in the May 16, 2025 edition of The Explainer, the agency’s weekly bulletin, and highlights what it described as an “unprecedented reduction” in debt burdens across the federation.
The report noted that N1.85 trillion was repaid specifically by the 33 states and the FCT, indicating a deliberate effort by sub-national governments to manage and reduce their debt obligations. The bulletin emphasized that this feat was aided by improved fiscal conditions following major policy shifts by the Tinubu administration.
“Today, at least 33 states and the FCT have reduced their domestic debt portfolios at an unprecedented rate. Within just 18 months, they have repaid a total of N1.85 trillion to their creditors,” the publication stated.
The NOA traced the evolution of state-level debt over the past decade, noting a sharp increase between 2014 and 2023. For example, Osun State’s domestic debt ballooned from N37.82 billion in 2014 to N145.71 billion by June 2023, while Delta State’s debt jumped from N211.95 billion to N465.41 billion over the same period.
Other states cited in the report include:
- Jigawa: from N1.57 billion (2014) to N43.13 billion (2023)
- Imo: from N28.95 billion to N220.84 billion
- Anambra: from N2.88 billion to N76.4 billion
- Sokoto: from N7.65 billion to N91.68 billion
The NOA attributed the improved debt repayment capacity to President Bola Tinubu’s economic reforms, particularly the removal of petrol subsidies and the floating of the naira, which led to increased revenue inflows and higher allocations to states.
“These twin policies have become tremendous blessings to the states. Revenues have been freed up, and states are now receiving significantly higher allocations from the Federation Account,” the publication noted.
The agency commended the fiscal discipline shown by the states and called for continued prudence and transparency in public financial management.
