States paid a mixed N455.38 billion as overseas debt service in 2025, up from N362.08 billion in 2024, in keeping with an evaluation of Federation Accounts Allocation Committee (FAAC) information launched by the Nationwide Bureau of Statistics (NBS).
The year-on-year improve of N93.30 billion represents a 25.77% rise, indicating {that a} higher share of statutory allocations was deducted at supply to satisfy exterior mortgage obligations.
Overseas debt service underneath the FAAC construction is handled as a first-line cost.
This implies repayments are settled earlier than web allocations are distributed to states, decreasing the fiscal house obtainable for capital tasks, salaries, and different obligations.
What the information reveals
Complete overseas debt service stood at N40.09 billion in January 2025 earlier than easing to N39.10 billion in February, reflecting a month-on-month decline of N0.99 billion or 2.48%.
From March to July, month-to-month deductions remained flat at N39.10 billion, pointing to a interval of fastened compensation commitments.
- An additional adjustment occurred in August when the full dropped to N36.14 billion, down by N2.95 billion or 7.56% from July.
- That decrease degree of N36.14 billion persevered via September, October, November and December, suggesting a recalibrated however secure compensation band for the ultimate 5 months of the yr.
- In distinction, 2024 noticed sharper early actions. Deductions rose from N9.88 billion in January to N24.53 billion in February and peaked at N40.41 billion in March.
They then declined to N21.70 billion in April and remained unchanged via Could, June and July.
One other step-up adopted in August 2024 to N40.09 billion, a determine that held regular via December.
Lagos alone accounts for 20.38% of the states’ overseas debt service
The distribution of the 2025 burden reveals heavy focus. The highest 10 states accounted for 68.57% of whole overseas debt service in the course of the yr.
- Lagos recorded the best deduction at N92.80 billion, up from N72.32 billion in 2024. The N20.49 billion improve interprets to twenty-eight.33% progress, with Lagos alone contributing 20.38% of the nationwide whole.
- Rivers adopted with N48.58 billion, in contrast with N23.13 billion in 2024. The N25.45 billion leap represents a 110.02% improve.
- Kaduna ranked third at N47.93 billion, up from N45.59 billion, reflecting a N2.34 billion improve or 5.13% progress.
- Ogun reported N25.20 billion, rising from N11.99 billion in 2024. The N13.21 billion improve quantities to 110.22%, successfully greater than doubling its overseas debt service.
- Cross River posted N21.01 billion, up from N17.10 billion, representing a N3.91 billion improve or 22.86% progress. Oyo recorded N20.17 billion, in contrast with N17.85 billion, an increase of N2.32 billion or 12.98%.
- Edo’s deductions elevated to N18.70 billion from N16.73 billion, reflecting 11.78% progress. Bauchi recorded N16.85 billion, up from N13.75 billion, a rise of twenty-two.58%.
Kano posted N10.63 billion, in contrast with N8.53 billion, representing 24.67% progress. Ebonyi rounded out the highest 10 with N10.37 billion, rising from N6.77 billion, a 53.09% improve.
By area, the South-West recorded the best overseas debt service at N162.77 billion, accounting for 35.74% of the nationwide whole. The South-South adopted with N100.37 billion or 22.04%, whereas the North-West posted N81.97 billion, representing 18.00%.
The North-East recorded N42.42 billion or 9.32%, the South-East accounted for N40.20 billion or 8.83%, and the North-Central reported the bottom at N27.65 billion, representing 6.07%.
The figures spotlight the structural nature of exterior debt deductions inside FAAC, with repayments prioritised forward of distribution, leaving states with important overseas publicity going through sustained fiscal strain.