DMO Data Shows Domestic Debt Rose to ₦172.37bn by March 2026 After Sharp Increase in First Quarter
BENIN CITY, EDO STATE | AUGUST 14, 2026
Edo State’s domestic debt has risen by ₦59.37 billion since the end of 2024, with the state moving from 12th to sixth among Nigeria’s most indebted states by domestic debt, according to the latest figures from the Debt Management Office, DMO.
The figures, reported by Premium Times on August 13, 2026, show that Edo’s domestic debt stood at ₦113 billion as of December 31, 2024, shortly after Governor Monday Okpebholo assumed office.
By March 2026, the figure had risen to ₦172.37 billion.
The increase represents a significant reversal after Edo recorded a decline in domestic debt throughout most of 2025.
The state’s domestic debt fell from ₦113 billion in December 2024 to ₦82.4 billion in March 2025, before dropping further to ₦80.32 billion in June and ₦76.13 billion in September 2025.
However, the downward trend was reversed during the final quarter of 2025.
By December 2025, Edo’s domestic debt had risen to ₦91.18 billion.
The sharpest increase occurred during the first quarter of 2026, when the debt stock jumped by ₦81.19 billion, reaching ₦172.37 billion by March.
The latest figure places Edo sixth in the DMO’s ranking of domestic indebtedness among the 36 states and the Federal Capital Territory.
FRESH BORROWING
The report links part of the increase to fresh borrowing by the Edo State Government.
According to Edo’s budget performance records, the administration obtained a ₦10.64 billion loan between July and September 2025.
Borrowing increased substantially during the first quarter of 2026.
The state’s First Quarter 2026 Budget Performance Report reportedly shows that the government obtained ₦46.71 billion in commercial-bank loans between January and March 2026.
That borrowing represents more than half of the reported ₦81.19 billion increase in Edo’s domestic debt during the same period.
However, the available figures do not completely explain the entire increase, leaving questions about the other factors responsible for the movement in the state’s domestic debt stock.
DEBT SERVICING
The rising debt has also increased the state’s debt-servicing obligations.
According to the report, Edo State spent ₦43.73 billion on public debt charges in 2025.
Of that amount, approximately ₦13.73 billion went towards interest on foreign borrowing, while ₦7.33 billion was spent on interest on domestic loans.
The state also reportedly paid ₦5.75 billion in foreign-loan principal and ₦16.92 billion in domestic-loan principal during the year.
In the first three months of 2026 alone, Edo reportedly spent another ₦12.79 billion on public debt charges.
That Q1 expenditure represents almost 30 per cent of the total debt charges recorded throughout 2025.
FROM 12TH TO SIXTH
The movement in Edo’s debt ranking is one of the most significant aspects of the latest figures.
At the end of 2024, Edo ranked 12th among states by domestic debt, with ₦113 billion.
By March 2026, the state had moved to sixth position, with domestic debt standing at ₦172.37 billion.
The development is likely to intensify scrutiny of the state’s fiscal management, particularly regarding the purpose of the additional borrowing and how the funds are being deployed.
Borrowing can provide governments with resources for infrastructure and other capital projects, but increased debt also creates future repayment obligations and can put pressure on government finances through debt servicing.
QUESTIONS OVER USE OF FUNDS
The latest figures therefore raise questions about what projects and programmes are being financed with the additional borrowing, whether the borrowed funds are producing sufficient economic value and how the state plans to manage the increased debt burden.
For Edo residents and taxpayers, the critical issue will be whether the additional debt translates into measurable improvements in infrastructure, healthcare, education, roads, employment, public services and internally generated revenue.
The state government has yet to provide, in the information contained in the report, a comprehensive public explanation accounting for the entire ₦81.19 billion increase recorded between December 2025 and March 2026.
A detailed explanation from the Edo State Government would help clarify the sources of the increase, the projects financed and the repayment strategy for the additional obligations.
As Edo State continues to implement its development agenda, the sustainability of its borrowing and the impact of debt servicing on public spending are expected to remain important issues for public scrutiny.
IBN NEWS will continue to monitor Edo State’s finances, budget implementation and debt position and bring you verified updates.
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