Nigeria’s governors are rapidly driving their states into massive debt. They borrow recklessly and manage funds poorly. Meanwhile, millions of citizens sink deeper into poverty.

Rather than prioritizing vital sectors like healthcare, education, and infrastructure, these leaders spend public money on luxuries. They choose vanity projects over life-changing programs.

Debt Without Purpose

Many states depend heavily on federal allocations. Yet, despite this reliance, governors continue borrowing with no clear repayment strategy.

These debts grow, while internally generated revenue (IGR) remains weak. Poor fiscal policies and corruption worsen the situation. As a result, most states now struggle to fund basic services.

Governors continue to collect loans, even though repayment capacity remains low. Their decisions hurt workers, retirees, and contractors. Many states now fail to pay salaries or pensions on time.

Worse still, infrastructure projects suffer delays or remain abandoned. Governors blame slow contractors, but most issues arise from poor planning.

Extravagance Amid Suffering

Despite these challenges, many governors live extravagantly. They move around in convoys of expensive SUVs. Some fly private jets while their people suffer.

In November 2024, Niger State Governor Mohammed Bago admitted to miscalculating a ₦1 trillion loan. He claimed the funds were meant for infrastructure. However, frustration over contractor delays exposed the real issue—lack of oversight.

At that time, Niger State already owed ₦144 billion domestically and $75.6 million externally. This scenario mirrors a national trend.

A Nation on the Brink

By Q3 2024, Nigeria’s total public debt reached ₦142.3 trillion. Debt servicing alone rose by 69% in the first half of the year.

Payments hit ₦6.04 trillion—up from ₦3.58 trillion in 2023. Alarmingly, the government plans to spend ₦16.3 trillion on debt servicing in 2025. That figure shows a 96.75% jump from 2024.

States continue to mirror this dangerous trajectory. The 36 states and FCT held ₦4.12 trillion in domestic debt by late 2023.

This amount represented 20% of Nigeria’s total debt. States also carried 11% of Nigeria’s external debt as of mid-2024.

Debt Leaders by the Numbers

Lagos led with ₦833.4 billion in domestic debt. Rivers followed with ₦389.2 billion. Delta owed ₦342 billion.

Other heavily indebted states included Bauchi (₦145.2 billion), Imo (₦155 billion), Enugu (₦128 billion), and Akwa Ibom (₦126 billion).

In external debt, Lagos also topped the list with $1.2 billion. Kaduna owed $640.6 million. Edo held $380.9 million.

Cross River had $210.9 million, while Rivers owed $203.8 million. Bauchi, Ogun, and Ekiti followed with $185.2 million, $166.6 million, and $136.3 million respectively.

Revenue Gaps Widen

These debts grow faster than revenue. In 2023, states and the FCT generated ₦2.43 trillion in total IGR.

That figure showed a 26% increase from ₦1.93 trillion in 2022. However, the gap between income and debt remains wide.

Lagos led in IGR with ₦815.86 billion. FCT followed with ₦211.10 billion. Rivers earned ₦195.41 billion.

Taraba, Yobe, and Kebbi recorded the lowest IGR. They generated ₦10.87 billion, ₦11.19 billion, and ₦11.74 billion respectively.

Alarmingly, 18 states attracted zero foreign investment between 2021 and 2023. These same states now owe more than their total earnings in that period.

Poor Governance, Broken Promises

Governors continue borrowing without any real development. Schools remain dilapidated. Students sit on the floor under leaky roofs.

In November 2024, UBEC’s Executive Secretary Hamid Bobboyi exposed how 34 states and the FCT failed to access a ₦263 billion education grant.

Their inaction undermines primary and junior secondary education. Similarly, healthcare suffers. In 2023, states allocated just ₦1.39 trillion to health.

That amount represents only 58% of their combined ₦2.3 trillion total budget, according to BudgIT’s 2024 report.

Hospitals lack basic drugs and equipment. Meanwhile, governors commission new mansions and fly luxury aircraft.

Vanity Projects Over Human Needs

In rural areas, millions lack clean water, electricity, and good roads. Yet governors focus on flashy projects.

Some even construct new airports in states with no commercial flights. These “legacy projects” serve political ego—not public good.

Rivers State’s $400 million monorail remains uncompleted—12 years after construction began. This white elephant symbolizes waste and misplaced priorities.

Zero Accountability, Compromised Oversight

Governors often hide budgets or manipulate them to appear legitimate. Citizens rarely see how funds are used.

State legislatures, meant to hold governors accountable, remain weak. Bribes and political favors silence them.

Without proper checks, governors operate like emperors. They spend freely and leave debts behind for the next administration.

Some states now use over half of their monthly federal allocation just to service loans. Nothing remains for real development.

Debt Servicing Soars

Between January and June 2024, states spent ₦139.9 billion on external debt servicing. That’s a 122% jump from ₦63.06 billion in 2023.

Lagos and Kaduna topped that list, spending ₦32.44 billion and ₦23 billion respectively. Together, they accounted for 40% of total subnational debt servicing.

Despite these numbers, the borrowing continues. Banks and financial institutions keep lending—knowing they’ll recover funds from federal allocations.

A Few Bright Spots

Not all governors act irresponsibly. In 2023, Anambra’s Governor Chukwuma Soludo rejected a ₦438 billion World Bank loan.

He called the loan terms unfavourable. In 2024, Abia’s Governor Alex Otti announced he repaid ₦90 billion of the ₦191 billion debt he inherited.

He has refused to take on new loans. Their actions prove that financial discipline is possible.

Borrowing Isn’t Evil—But Waste Is

Borrowing is not bad by itself. Nations borrow to fund growth. But wasteful borrowing destroys economies.

Singapore has a debt of $926 billion and still runs budget surpluses. It also holds an $800 billion sovereign wealth fund.

The UAE has $114.5 billion in debt but manages a $1 trillion wealth fund. Their investments create jobs and support innovation.

The Way Forward

Nigerians must speak up. Citizens must demand transparency and fiscal responsibility from state governments.

Civil society groups should push for publicly available budgets. Governors must show how they spend each kobo.

The federal government and banks should tighten lending conditions. States must show clear plans before receiving loans.

Lastly, voters must stop electing leaders based on slogans and party loyalty. Nigeria needs honest, competent, and visionary governors.

Conclusion

Nigeria’s debt crisis did not happen overnight. It is the product of years of mismanagement, greed, and silence.

Now is the time to stop the bleeding. If we act now, we can rebuild trust, restore accountability, and secure our future.