When Nigerian states borrow too much money, regular people end up feeling the pain. In the first quarter of 2025, ten states, namely Rivers, Enugu, Niger, Taraba, Bauchi, Benue, Gombe, Edo, Kwara, and Nasarawa, together increased their debt from ₦884.9 billion in Q1 2024 to ₦1.30 trillion in Q1 2025.

That is a 47.2 percent jump, even though these states received more money from the federal government. While borrowing can pay for roads or clinics, the cost of paying back those loans can shrink school budgets, hurt hospitals, and eventually force your household to pay more, either through fewer services or higher local fees.

Less Money for Public Services

Every naira used to pay back loans is a naira not spent on schools, health centres, or fixing street lights. In Q1 2025, those ten states held 33.7 percent of all state debts in Nigeria, up from just 21.8 percent a year earlier.

At the same time, the cost of repaying debt in seven of those states grew by 51 percent from the previous three months, rising from ₦65.24 billion in Q4 2024 to ₦98.71 billion in Q1 2025. When debt costs eat up more than all the money a state collects on its own, like they did in several cases, the government must cut back on basic services.

Expect longer waits at clinics, crumbling school buildings, and frequent power cuts when so much money goes to interest payments instead.

Projects Stalled by Rising Debt

Borrowing may help start new projects, but when debt climbs fast, it can block more work later on. Rivers State, for example, now owes ₦364.4 billion.

As more of its budget goes to debt, less is left for road repairs or fixing water pipes. People then face bumpy, dangerous roads and unreliable water supply,both of which raise how much it costs to live and work.

Higher Future Fees and Taxes

As states borrow more, banks may charge them higher interest rates next time. To cover these rising costs, states often introduce new taxes or fees. You might see property taxes go up, parking fees increase, or extra charges on electricity bills. In effect, the borrowing of today can mean a heavier tax burden on families tomorrow.

Poorer Families Feel It Most

When states cut back on support to pay debts, the poorest suffer most. If public health centres lose funding, families may have to pay for treatments they once got for free. Small shop owners and traders who depend on good roads and steady power feel the pinch too, and they often pass those extra costs on to customers.

What You Can Do

You do not have to sit and watch. Many states now share their budgets online or stream hearings on TV. You can attend these meetings, either in person or online, and ask leaders exactly how they borrowed money and how they plan to pay it back.

Citizens’ groups and journalists can keep an eye on quarterly debt reports from the Debt Management Office and push for open, honest audits. When you demand clear answers, you help make sure borrowed money benefits the public, not just private interests.

Borrowing can help states build important projects, but too much debt can crowd out the services you count on every day. The extra ₦417.7 billion in debt taken on by ten states in just one year shows how quickly loans grow.

As states pour more money into repayments, you’ll notice fewer services and higher local fees. By staying informed and speaking up, you can help your state leaders borrow responsibly and protect both public services and your own wallet.