Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
Edo State's domestic debt has surged by N59.37 billion under Governor Monday Okpebholo, catapulting the state from 12th to sixth among Nigeria's most indebted states in just 15 months, according to the latest data from the Debt Management Office. The sharp rise in borrowing has raised fresh concerns about the state's fiscal discipline and its ability to service mounting obligations, even as the governor had earlier touted a decline in debt during his first year in office.
When Okpebholo was sworn in on November 12, 2024, Edo's domestic debt stood at N113 billion as of December 31, 2024, placing the state 12th among the 36 states and the Federal Capital Territory. The debt subsequently declined in each of the first three quarters of 2025, falling to N82.4 billion by March, N80.32 billion by June, and N76.13 billion by September 2025. However, the improvement was reversed in the final quarter of the year. By December 31, 2025, Edo's domestic debt had risen to N91.18 billion.
The sharpest increase came in the first quarter of 2026, when the debt stock surged to N172.37 billion. That represents an increase of N81.19 billion in just three months – an 89 per cent jump – placing Edo sixth in the domestic debt ranking by March 31, 2026. The latest DMO Domestic Debt Data for the 36 states and the FCT shows that the combined domestic debt of seven jurisdictions – the FCT, Edo, Borno, Yobe, Benue, Kaduna and Nasarawa – increased by N355.18 billion between December 2025 and March 2026.
The figures mean Edo's domestic debt is now N59.37 billion higher in March 2026 than the N113 billion recorded at the end of 2024. The development places Edo higher on the list of states with heavy domestic debt obligations in the country. The DMO, however, cautioned that an increase in debt stock does not necessarily mean a state obtained a fresh loan, as debt can also increase through drawdowns from existing facilities and other adjustments to outstanding obligations.
The debt surge comes despite states receiving higher allocations from the Federation Account during the same period. The 36 states received about N2.49 trillion in FAAC allocations in the first quarter of 2026, compared with approximately N1.98 trillion during the corresponding period in 2025. Despite the increased revenue, some states, including Edo, recorded significant rises in their outstanding domestic obligations.
Economists have stressed that borrowing is not necessarily harmful when the funds are invested in productive projects capable of generating economic returns. The latest figures are expected to fuel further debate over how states are managing increased federal allocations and whether rising debt is translating into infrastructure, economic growth and improved public services. The reported debt increase reflects the change in the state's domestic debt profile under Okpebholo's administration, though no further details were provided on the specific loans, repayment terms or the purposes for which the debts were incurred.
As Edo State grapples with its ballooning debt burden, the figures raise uncomfortable questions about the sustainability of the state's borrowing trajectory and whether the administration's fiscal strategy is truly in the long-term interest of the people. For now, the numbers speak for themselves: Edo is borrowing more, and the bills are mounting.
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