Jigawa, Ondo, Anambra record lowest debt-to-IGR ratios in 2025

In 2025, Jigawa, Ondo, and Anambra topped the list as states with the lowest debt-to-IGR ratios, according to a report by Nairametrics Research. These three states showcased strong revenue-generating capabilities while maintaining relatively low debt burdens. However, numerous states continued to carry debt loads that were considerably higher than their annual IGRs.

While the debt profile is often assessed by the amount owed, a more pertinent indicator is the ease of servicing that debt, measured by the Debt-to-IGR ratio. This ratio compares a state's debt stock to the revenue it generates internally, with a lower ratio indicating better fiscal health and greater financial flexibility. Kwara had the highest ratio at 66.06%, meaning its debt stock was equivalent to approximately N66.06 for every N100 of internally generated revenue.

Kogi followed with a ratio of 63.62%, the FCT with 53.00%, Kano with 52.57%, and Kebbi with 47.11%. Enugu stood out among the top performers, reporting a debt-to-IGR ratio of 38.74% despite generating the highest IGR in the group at N406.77 billion. Katsina ranked fourth with a ratio of 21.95%, highlighting its capacity to manage debt without significant strain on internally generated resources.

Anambra secured the third position with a ratio of 20.25%, benefiting from a substantial commercial ecosystem and vibrant SME sector. Ondo recorded an impressive ratio of 13.95%, showcasing a healthy balance sheet and robust debt-servicing capacity. In contrast, Jigawa had the lowest Debt-to-IGR ratio at 2.40%, with a debt stock of just N1.6 billion against an IGR of N66.73 billion.

This ratio, driven by a moderate IGR base and an exceptionally low debt stock, underscores Jigawa's fiscal resilience.