States with strong internally generated revenue (IGR) relative to modest debt burdens recorded the lowest debt-to-IGR ratios across Nigeria in 2025, according to Nairametrics Research. Jigawa, Ondo and Anambra led the ranking, signalling stronger debt-servicing capacity and reduced dependence on federal allocations.
The debt-to-IGR ratio measures a state's outstanding debt stock against the revenue it raises internally. A lower ratio generally points to healthier public finances and greater fiscal flexibility.
Jigawa topped the list at 2.40%, generating N66.73 billion in IGR against a debt stock of only N1.6 billion. That left a gap of more than N65 billion between its annual internal revenue and reported debt, meaning its debt was equivalent to about N2.40 for every N100 generated internally.
Ondo ranked second at 13.95%, with IGR of N60.32 billion and debt of N8.42 billion. Anambra placed third at 20.25%, recording N57.03 billion in internally generated revenue and N11.55 billion in debt.
The remaining states with the ten lowest ratios were Katsina at 21.95%, Enugu at 38.74%, Kebbi at 47.11%, Kano at 52.57%, the Federal Capital Territory at 53.00%, Kogi at 63.62% and Kwara at 66.06%.
Enugu stood out within the low-ratio group for the size of its revenue base. The state generated N406.77 billion in IGR while carrying N157.60 billion in debt. Its IGR was among the highest recorded nationally in 2025, which significantly improved the relationship between its debt stock and revenue.
Lagos, despite holding the largest debt stock of more than N1.2 trillion, recorded a debt-to-IGR ratio of 68.93% because it generated N1.769 trillion in internally generated revenue in 2025. This shows that nominal debt size alone does not determine sustainability; a large economy with strong IGR can carry heavier absolute debt while maintaining a lower debt-to-revenue ratio.
At the opposite end, Yobe recorded the highest ratio at 506.02%, generating N16.01 billion in IGR against N81.00 billion in debt, meaning its debt was more than five times its annual internal revenue. Benue followed at 362.68%, Taraba at 303.65%, Bauchi at 295.61%, Cross River at 234.24%, Sokoto at 231.45% and Niger at 214.96%.
