Four Nigerian states recorded more than 20% reductions in their domestic debt stocks in the first half of 2026, led by Enugu, which cut its debt by more than half during the period.
The data shows that Enugu, Jigawa, Ondo and Zamfara recorded year-to-date reductions of more than 20% between December 2025 and June 2026.
The four states had a combined domestic debt stock of N126.85 billion as of June 2026, down from N224.66 billion in December 2025.
This represents a 43.53% reduction, or N97.81 billion, during the first six months of the year.
The reductions were measured against each state’s December 2025 debt stock and the latest figure as of June 2026.
Enugu recorded the largest reduction at 52.73%, followed by Jigawa at 34.71%, Ondo at 26.82% and Zamfara at 20.86%.
The figure represents a 26.82% reduction, or N2.26 billion, during the first half of the year.
Most of the decline came in the second quarter, with a 15.78% drop between March and June, taking its debt stock to N6.16 billion from N7.31 billion.
The four states reduced their debt at different rates across the two quarters. Combined, their debt stock fell by N48.24 billion in Q1 2026 and by a further N49.56 billion in Q2 2026, showing that the pace of reduction picked up slightly in the second quarter.
The pace of reduction picked up in the second quarter, driven largely by Enugu, whose Q2 cut was N7.95 billion higher than its Q1 cut. Jigawa’s reduction came entirely in Q2, while Ondo reduced its debt at a steady pace in both quarters. Zamfara was the exception, with most of its reduction coming in Q1 before slowing in the second quarter.
Several other states also recorded reductions in their domestic debt stocks during the first half of 2026, although the declines were below the 20% threshold:
Enugu had the largest reduction in domestic debt of any state in both naira and percentage terms in the first half of 2026. The state’s N83.10 billion decline represented 84.96% of the combined N97.81 billion reduction recorded by the four states.
While 26 states recorded reductions between December 2025 and June 2026, 10 states and the FCT increased their debt stocks. The increases were particularly pronounced in Edo (135.72%), FCT (89.98%), Borno (70.52%), Adamawa (52.74%) and Delta (48.41%).
The reductions in Enugu, Jigawa, Ondo and Zamfara show that subnational debt positions can change significantly within six months, with repayments and changes in borrowing affecting the debt stock of individual states.
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