12 Governors Set to Exit With N5.3tn Debt Burden in 2027, 2028

By Victor Idajili

Twelve state governors whose tenures will end in 2027 and early 2028 are expected to leave behind a combined debt of about N5.3 trillion in domestic and external obligations, according to data from the Debt Management Office.

The governors are Umaru Fintiri of Adamawa, Mai Mala Buni of Yobe, Abdullahi Sule of Nasarawa, AbdulRahman AbdulRazaq of Kwara, Dapo Abiodun of Ogun, Inuwa Yahaya of Gombe, Bala Mohammed of Bauchi, Babajide Sanwo-Olu of Lagos, Babagana Zulum of Borno, Seyi Makinde of Oyo, Hope Uzodimma of Imo and Douye Diri of Bayelsa.

As of the first quarter of 2026, the 12 states had accumulated N2.16 trillion in domestic debt. Their external debt stood at about $2.33 billion based on the latest available state-level data.

Most of the governors will complete their second terms in 2027. Uzodimma and Diri will remain in office until January 15 and February 14, 2028 respectively.

Lagos has the largest domestic debt among the 12 states at N1.205 trillion as of Q1 2026. That accounts for more than half of the combined N2.16 trillion domestic debt of the states.  

Nasarawa has the lowest domestic debt at N27.15 billion.

Lagos also tops external debt with $1.174 billion, while Yobe has the lowest at $46.67 million.

The total debt could rise further before the governors exit if the states take new loans or updated DMO figures show additional liabilities.

 
The debt positions inherited and left by the governors vary across states.

In Adamawa, Fintiri is expected to leave with domestic debt of N64.7 billion, down from N95.22 billion. But external debt rose to $124 million from $100.614 million.

Yobe’s Buni increased domestic debt to N98.60 billion from N27.47 billion. External debt also rose to $46.67 million from $26.911 million.

Sule reduced Nasarawa’s domestic debt to N27.15 billion from N89.95 billion. External debt is $60.82 million.

In Imo, Uzodimma cut domestic debt to N81.65 billion from N164.436 billion, but external debt climbed to $117.08 million from $64.762 million.

Kwara’s AbdulRazaq reduced domestic debt to N56.92 billion from N59.58 billion, while external obligations rose to $64.159 million from $47.961 million.

Abiodun increased Ogun’s domestic debt to N200.748 billion from N97.050 billion, and external debt to $217 million from $102.154 million.

Yahaya reduced Gombe’s domestic debt to N65.17 billion from N76.895 billion, but external debt rose to $88.7 million from $36.960 million.

Bauchi’s Bala Mohammed increased domestic debt to N154.45 billion from N93.320 billion, and external debt to $220.6 million from $133.705 million.

Zulum raised Borno’s domestic debt to N88.44 billion from N78.259 billion, and external debt to $69.9 million from $21.313 million.

Bayelsa’s Diri cut domestic debt sharply to N50.17 billion from N147.930 billion, and external debt to $55.5 million from $59.551 million.

Makinde also reduced Oyo’s domestic debt to N69.8 billion from N94.140 billion, and external debt to $87.5 million from $136.531 million.

In Lagos, Sanwo-Olu increased domestic debt to N1.205 trillion from N542.231 billion, but reduced external debt to $1.174 billion from $1.421 billion.

 
Professor of Development Economics at Nnamdi Azikiwe University, Uche Nwogwugwu, said states can only reduce debt if borrowed funds are invested in productive sectors that generate enough revenue for repayment. 

He noted that lack of policy continuity is a major challenge, as new administrations often abandon existing plans instead of building on them.

“Under the current arrangement, every government that comes wants to invent its own wheel. States can actually reduce their debts if they can identify productive investments and channel resources into them,” he said.

He cited Imo’s investments in gas and Otti’s people-oriented programs in Abia as examples of alternative growth strategies, and warned that projects without clear economic returns lead to heavy borrowing.

“Debt is a micro-unit of a nation. Every part of the state should feel both the cost and the benefits. States have to borrow. There is nothing wrong with states borrowing as far as the debts will be paid back,” he added.

Professor of International Economics, Jonathan Aremu, also said borrowing is not a problem if it is productive. 

“If I can borrow and build a road that will help agricultural produce get to the market, the debt is a good one. If it is not producing anything, it is dead-weight debt. It means it is putting a lot of burden on the economy,” he said.

Emerging markets analyst, Ike Ibeabuchi, warned against over-reliance on external loans. He noted that with the naira weakening from about N465/$ in May 2023 to around N1,326/$, servicing dollar debts has become much more expensive.

“With naira depreciating, external debts are quite a big burden. If you must borrow, look for domestic sources or assets to sell,” he said.