Edo Debt Surges by N81bn Under Okpebholo, Now 6th Most Indebted State

Edo State’s domestic debt has climbed to N172.37 billion, placing the state among Nigeria’s six most indebted states and raising fresh questions about the pace of borrowing under Governor Monday Okpebholo.

The latest figures from the Debt Management Office (DMO) show that Edo’s domestic debt increased from N91.18 billion in December 2025 to N172.37 billion by March 2026.

That is an increase of N81.19 billion in just three months.

The development marks a major change in Edo’s position on the national domestic debt table. At the end of 2024, the state ranked 12th with a debt stock of N113 billion.

By March 2026, Edo had moved up to sixth place.

The figures put the state’s borrowing position under closer scrutiny, particularly as the administration continues to rely on loans to finance government activities and projects.

Edo’s debt trajectory changed sharply

Edo did not record a steady increase in domestic debt throughout the period.

When Governor Okpebholo took office in November 2024, the state’s domestic debt stood at N113 billion as of December 2024.

The figure subsequently fell during the first three quarters of 2025.

By March 2025, Edo’s domestic debt had dropped to N82.4 billion. It fell again to N80.32 billion in June and reached N76.13 billion by September.

The trend changed in the final quarter of the year.

By December 2025, the debt had risen to N91.18 billion.

The most dramatic movement came between December 2025 and March 2026, when the debt stock almost doubled, rising by N81.19 billion to N172.37 billion.

The March figure is also N59.37 billion higher than the N113 billion recorded at the end of 2024.

Commercial bank loans account for part of the increase

Edo’s budget performance records indicate that borrowing increased during the period.

The state obtained about N10.64 billion in loans between July and September 2025, according to its third-quarter budget implementation report.

Borrowing became considerably higher in the first quarter of 2026.

The state’s First Quarter 2026 Budget Performance Report showed that the government obtained N46.71 billion in commercial bank loans between January and March.

The amount represents more than half of the N81.19 billion increase recorded in Edo’s domestic debt during the same period.

However, the commercial bank borrowing does not by itself account for the entire increase in the DMO debt figure.

This leaves questions around the composition of the additional debt and the transactions responsible for the sharp movement between December 2025 and March 2026.

Debt servicing is becoming another concern

The size of Edo’s debt is only one part of the issue.

The cost of servicing existing obligations is also important because money used for debt repayment and interest cannot be spent on other government priorities.

Edo spent N43.73 billion on public debt charges in 2025, according to its fiscal records.

The expenditure included N13.73 billion in interest on foreign loans, N7.33 billion in interest on domestic borrowing, N5.75 billion in foreign loan principal repayments and N16.92 billion in domestic loan principal repayments.

The pressure continued into 2026.

In the first three months of the year alone, the state spent N12.79 billion on public debt charges.

That means almost one-third of the amount spent on debt charges throughout 2025 was paid within the first quarter of 2026.

For Edo, this raises a broader fiscal question: how much of the state’s future revenue will have to be committed to servicing debts accumulated today?

What is Edo borrowing the money for?

Borrowing is not necessarily a bad thing for a government.

Loans can provide funds for roads, schools, hospitals, water projects and other infrastructure capable of improving economic activity and generating long-term value.

The key issue is how the borrowed money is used.

For Edo residents, the important question is therefore not only how much the state owes but also what the additional N81.19 billion in domestic debt is financing.

If the loans are directed towards productive projects that improve the state’s economy and expand its revenue base, the borrowing could produce long-term benefits.

But if a growing debt stock is used mainly to finance recurrent expenditure or obligations that do not generate lasting economic value, future administrations could face greater pressure.

Edo moves from 12th to sixth

The change in Edo’s ranking makes the development particularly notable.

In December 2024, the state ranked 12th among Nigeria’s states and the Federal Capital Territory in domestic debt.

Fifteen months later, Edo was ranked sixth.

The movement reflects not only the size of the debt but also the speed at which the state’s position changed.

Edo now sits among the states with the highest domestic debt exposure in the country.

For taxpayers, the concern will be whether the rising obligations will translate into visible improvements in infrastructure, healthcare, education and other public services.

The bigger issue for Edo

The latest debt figures place the Okpebholo administration at an important point in its fiscal management.

The government will need to demonstrate clearly how new borrowing is being used, how much of the state’s revenue is committed to debt servicing and what measures are being taken to prevent debt from becoming a heavier burden on future budgets.

Edo also needs stronger internally generated revenue if it is to reduce dependence on borrowing.

A growing economy and stronger revenue collection would make it easier for the state to meet its obligations without squeezing funds available for public services.

The latest DMO figures therefore present more than a ranking.

They offer a snapshot of Edo’s changing financial position — and put greater attention on the decisions being made today that could shape the state’s finances for years to come.

For Edo residents, the central question is simple: as the state takes on more debt, where is the money going, and what lasting value will it create?