The Taraba State Government has rejected claims that it borrowed N1.2 trillion within three years, describing the figure as inaccurate and capable of creating a misleading impression about the state’s financial position.
The Commissioner for Finance, Dr Sarah Adi, made the clarification on Sunday in Jalingo while addressing journalists on the state’s debt profile and various financing arrangements.
According to Adi, the latest figures from the Debt Management Office (DMO) show that Taraba’s domestic debt stood at N85.51 billion as of December 31, 2025.
She said the figure was actually about N2.45 billion lower than the N87.96 billion domestic debt recorded in earlier DMO data before Governor Agbu Kefas assumed office.
Adi explained that a DMO publication released in March 2023 reflected the state’s debt position as of September 30, 2022, rather than its position at the time the publication was released.
Taraba Explains External Debt
On external borrowing, the commissioner said Taraba’s obligations increased from approximately $46.47 million as of December 31, 2022, to about $48 million by December 31, 2025.
She described the increase as relatively modest but acknowledged that changes in the foreign exchange rate could affect the naira value of the state’s external obligations.
Adi also addressed the N206.78 billion commercial bank financing facility approved by the Taraba State House of Assembly in 2023.
She explained that the facilities involving Zenith Bank, United Bank for Africa, Fidelity Bank and Keystone Bank were backed by designated revenue streams.
The commissioner stressed that the total value of an approved facility should not automatically be interpreted as the amount currently owed by the state.
“The true outstanding balance can only be established by examining the amount actually disbursed, repayments made, any restructuring undertaken and the current balances on the respective facilities,” she said.
Govt Clarifies N350bn Capital Market Programme
The commissioner also denied claims that Taraba had already received N350 billion through a proposed capital-market financing programme.
According to her, the programme remains subject to regulatory, statutory, market and disclosure requirements and is expected to raise funds in stages.
Adi said an initial tranche of about N35 billion was being considered, stressing that the full N350 billion programme size should not be mistaken for money already received by the state or an existing debt liability.
She further clarified three financing agreements worth approximately $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.
However, Adi explained that signing the agreements did not mean the funds had already been released.
She said the facilities remained subject to conditions precedent, regulatory processes and statutory approvals before any money could be drawn.
Govt Warns Against Mixing Financing Figures
The commissioner said Taraba’s finances should be assessed by separating existing debt stock, approved facilities, outstanding balances, and proposed or undisbursed financing.
She warned that simply adding headline figures from these different categories together could produce an inaccurate picture of the state’s actual debt burden.
According to Adi, the Kefas administration’s borrowing policy is guided by development priorities, repayment capacity, transparency and accountability.
She said the state government was open to scrutiny of its finances but insisted that any assessment should be based on verified figures and proper interpretation of financial data.
Source: Taraba State Government.
