ABUJA, Nigeria — Lagos State recorded the highest external debt deductions from the Federation Accounts Allocation Committee (FAAC) disbursements in the first quarter of 2026, with N26.38 billion deducted from the state’s allocation, according to data obtained by TheCableIndex from the National Bureau of Statistics and FAAC reports.
Kaduna State followed closely with N19.28 billion in deductions, while Edo State came third with N8.41 billion. Cross River and Rivers States completed the top five, with N7.08 billion and N6.30 billion respectively. The data, which covers all 36 states of the federation, highlights the varying levels of external debt obligations borne by sub-national governments in Nigeria.
Bauchi State recorded N5.99 billion in deductions, followed by Katsina with N5.68 billion and Ogun with N5.54 billion. Oyo State had N4.09 billion deducted, while Niger State recorded N3.73 billion. Gombe, Ekiti, Kogi, and Borno States each had deductions ranging from N2.56 billion to N2.91 billion.
Kano State, Nigeria’s most populous state, recorded N2.53 billion in deductions, while Enugu, Osun, Imo, and Plateau States each had between N2.07 billion and N2.48 billion. Abia, Delta, Adamawa, Sokoto, and Kebbi States recorded deductions ranging from N1.45 billion to N1.89 billion.
Ondo, Kwara, Ebonyi, Anambra, and Benue States each had deductions between N1.03 billion and N1.13 billion. Bayelsa State recorded N962.44 million, while Jigawa recorded N883.34 million and Akwa Ibom recorded N875.47 million. Yobe, Nasarawa, and Taraba States each had deductions below N700 million, while Zamfara State recorded the lowest deductions at N488.62 million.
The data reflects the external debt obligations of states, which are deducted at source from their monthly FAAC allocations to service loans obtained from multilateral and bilateral creditors. The deductions are part of the states’ debt repayment commitments, which are managed through the Debt Management Office.
The highest deductions recorded by Lagos and Kaduna indicate that these states have significant external debt portfolios, likely contracted for infrastructure development and other capital projects. The data also suggests that states with lower deductions may have either smaller debt burdens or have not accessed external financing to the same extent as their counterparts.
The FAAC disbursements are shared monthly among the three tiers of government from the federation account, which comprises revenue from oil and gas, taxes, and other sources. External debt deductions are made before the remaining allocation is disbursed to the states.
As states continue to grapple with fiscal challenges, the deductions from FAAC allocations underscore the importance of prudent debt management. For now, the data provides a clear picture of the external debt obligations of Nigerian states, with Lagos leading the pack and Zamfara recording the lowest deductions.
