Taraba Govt rejects N1.2tr debt claim, says figure misleading

The Taraba State Government has rejected claims that the state is currently burdened with about N1.2 trillion in debt, describing the figure as inaccurate and misleading.

Making the clarification over the weekend in Jalingo, the Commissioner for Finance, Sarah Adi, said discussions about the state’s finances must distinguish between existing debt stock, approved credit facilities, outstanding balances and financing arrangements that are yet to be disbursed.

According to the latest data from the Debt Management Office (DMO), Taraba’s domestic debt stood at N85.51 billion as of December 31, 2025.

“The figure represented a reduction of about N2.45 billion from the N87.96 billion domestic debt recorded in DMO data available before Governor Agbu Kefas assumed office,” Adi said.

She also clarified that the DMO publication released in March 2023 reflected Taraba’s debt position as of September 30, 2022, rather than its debt position at the time the report was published.

On external debt, the commissioner said the state’s obligations increased from about $46.47 million as of December 31, 2022, to approximately $48.04 million as of December 31, 2025.

Adi described the increase as relatively modest, while acknowledging the potential impact of foreign exchange fluctuations on external obligations.

The commissioner also addressed the N206.78 billion commercial bank financing facility approved by the Taraba State House of Assembly in 2023.

She said the facilities, involving Zenith Bank, United Bank for Africa, Fidelity Bank and Keystone Bank, were backed by designated revenue streams.

Adi stressed that the original approved value of a credit facility should not automatically be treated as the state’s current outstanding debt, as repayments, restructuring and the actual amount drawn could have altered the liability.

“The true outstanding balance could only be established by examining the amount actually disbursed, repayments made, any restructuring undertaken and the current balances on the respective facilities,” she added.

The government also dismissed claims that Taraba had already received N350 billion under a proposed capital-market financing programme.

According to the commissioner, the programme remains subject to regulatory, statutory, market and disclosure requirements and is designed to raise funds in stages.

She said an initial tranche of about N35 billion was under consideration, stressing that the full N350 billion programme size should not be interpreted as funds already received or as an existing drawn liability.

The administration further clarified three financing agreements worth about $268 million signed with the ECOWAS Bank for Investment and Development (EBID) on June 26, 2026.

“The facilities are intended to finance an integrated industrial park, irrigated rice production and processing, and a 50-megawatt solar power project,” she announced.

While arguing that the signing of the agreements did not mean that the funds had been immediately disbursed, she explained that the facilities remained subject to conditions precedent, regulatory procedures and statutory approvals before any drawdown could take place.

The government said four categories should be considered separately when assessing Taraba’s financial position: existing debt stock, approved facilities, outstanding balances, and proposed or undisbursed financing.

The statement warned that simply adding headline figures from the four categories together would produce a misleading picture of the state’s actual debt burden.

According to the commissioner, the Kefas administration’s borrowing policy was guided by development needs, repayment capacity, transparency and accountability.

The government further pledged to comply with relevant borrowing and disclosure requirements, while urging stakeholders to assess the state’s finances based on actual drawdowns, repayments, outstanding liabilities, financed projects and its capacity to service existing obligations.