Under Okpebholo, Edo debt rises, now Nigeria’s sixth most indebted state

Edo State’s domestic debt has risen sharply under Governor Monday Okpebholo, climbing from N113 billion at the end of 2024 to N172.37 billion by March 2026 and moving the state from 12th to sixth among Nigeria’s most indebted states, according to the latest data from the Debt Management Office (DMO).

The increase follows a period of declining debt in 2025, when Edo’s domestic debt fell from N113 billion in December 2024 to N76.13 billion by September 2025, before rising again to N91.18 billion at the end of the year.

The latest DMO Domestic Debt Data for the 36 states of the federation and the Federal Capital Territory shows that the debt increased by N81.19 billion between December 2025 and March 2026 alone.

That represents 89 per cent increase in just three months, placing Edo sixth in the domestic debt ranking by 31 March 2026.

Mr Okpebholo was sworn in as governor on 12 November 2024, succeeding Godwin Obaseki.

Debt falls, then rises suddenly

When Mr Okpebholo assumed office, Edo’s domestic debt stood at N113 billion as of 31 December 2024, placing the state 12th among the 36 states and the FCT.

The debt subsequently declined in each of the first three quarters of 2025.

By 31 March 2025, it had fallen to N82.4 billion. It declined further to N80.32 billion by June and N76.13 billion by September.

But the improvement was reversed in the final quarter of the year.

By 31 December 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.

The latest figure means Edo’s domestic debt was N59.37 billion higher in March 2026 than the N113 billion recorded at the end of 2024.

It also means that the state moved six places upward in the DMO’s ranking of domestic indebtedness within about 15 months.

Fresh borrowing behind increase

Checks of Edo State’s budget performance reports show that the administration began obtaining loans in the third quarter of 2025, between July and September. During the quarter, the state obtained a N10.64 billion loan.

The borrowing increased substantially in the first quarter of 2026.

The First Quarter 2026 Budget Performance Report shows that between January and March, the Edo State Government obtained a N46.71 billion loan from commercial banks.

The N46.71 billion commercial bank borrowing represents more than half of the N81.19 billion increase in the state’s domestic debt stock between December 2025 and March 2026.

However, the figures also show that the increase in debt cannot be explained by the First Quarter commercial bank borrowing alone, leaving a significant portion of the movement requiring further explanation from the state government’s fiscal records.

The development places the financing of government expenditure under Mr Okpebholo under renewed scrutiny, particularly as the state takes on notably more domestic obligations.

N43.73bn spent on debt charges

The rising debt has also translated into huge debt-servicing obligations for the state. In 2025, Edo’s public debt charge stood at N43.73 billion.

Of this amount, N13.73 billion was paid as interest on foreign borrowing, while N7.33 billion went to interest on domestic loans.

The state also paid N5.75 billion as foreign loan principal and N16.92 billion as domestic loan principal.

In the first three months of 2026 alone, the government spent N12.79 billion on public debt charges, according to the First Quarter 2026 Budget Performance Report.

The January to March 2026 expenditure amounts to nearly 30 per cent of the total N43.73 billion spent on public debt charges in the whole of 2025.

This creates an important fiscal tension for the state: while borrowing can provide resources for infrastructure and other capital expenditure, debt service consumes funds that could otherwise be deployed for public services and development projects.

PREMIUM TIMES had reported that Mr Okpebholo’s administration reached N14.15 billion in extra-budgetary spending, raising questions about his administration’s fiscal discipline.

From 12th to sixth most indebted state

The shift in Edo’s position in the national debt ranking is perhaps the clearest indication of the scale of the change.

At the end of December 2024, Edo was the 12th most indebted state in the country by domestic debt, with N113 billion.

In Just 15 months, by March 2026, it had moved to sixth position with N172.37 billion.

The state’s debt stock now puts it among the six states with the highest domestic debt exposure in the country, according to the DMO’s latest published figures.

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The movement is notable beyond the absolute amount owed, but because of the speed at which the debt stock increased after recording a substantial reduction in 2025.

The question for Edo’s fiscal managers will now be what the additional borrowing is financing, whether the funds are generating sufficient economic value to justify the obligations, and how the state intends to manage the resulting debt-service burden.

For taxpayers, the answer will be measured by whether the borrowing translates into durable infrastructure, stronger internally generated revenue and improved public services without placing an unsustainable burden on future budgets.