The Taraba State Government has rejected claims by opposition parties that the state accumulated a debt burden of more than ₦1.2 trillion within three years of Governor Agbu Kefas’ administration.
Commissioner for Finance, Budget and Economy, Sarah Adi, described the allegation as false and misleading, saying available Debt Management Office records do not support the claim.
Adi urged political actors to verify financial data before presenting it to the public, saying legitimate scrutiny of government finances should be based on accurate figures.
According to the commissioner, Taraba’s domestic debt stood at approximately ₦85.51 billion as of December 31, 2025.
She said the figure was about ₦2.45 billion lower than the approximately ₦87.96 billion domestic debt reported in DMO data preceding the current administration.
“The Taraba State Government has taken note of recent public commentary concerning the debt and financing position of the State.
“The Government welcomes legitimate scrutiny of public finances. However, public discussion must distinguish between existing debt, approved facilities, outstanding balances, and financing arrangements that have not yet been drawn down,” she said.
Adi said the claim that the state currently owed about ₦1.2 trillion did not reflect its recognised debt stock in the latest publicly available DMO records.
She explained that the DMO data published in March 2023 reported Taraba’s domestic debt as of September 30, 2022.
“In the latest publicly available DMO data, as at 31 December 2025, Taraba State’s domestic debt stock stood at approximately ₦85.51 billion.
“This is approximately ₦2.45 billion lower than the earlier reported figure. The official DMO figures therefore do not support suggestions that Taraba State’s recognised domestic debt stock has risen to anything approaching ₦1.2 trillion,” Adi said.
On external debt, she said Taraba’s obligations stood at approximately US$46.47 million as of December 31, 2022, compared with approximately US$48.04 million as of December 31, 2025.
The government acknowledged the exchange-rate risks associated with foreign-currency obligations and said external financing would continue to be considered within the state’s fiscal sustainability and repayment capacity.
Adi also clarified the status of financing facilities approved by the Taraba State House of Assembly in 2023.
The Assembly approved financing facilities of approximately ₦206.78 billion involving Zenith Bank Plc, United Bank for Africa Plc, Fidelity Bank Plc and Keystone Bank.
The facilities were structured against designated revenue streams, including Federal Account Allocation, Joint Account Allocation Committee proceeds, Value Added Tax receipts and Internally Generated Revenue.
The government stressed that the original approved value of a facility should not automatically be treated as an outstanding debt.
“Approval or original facility value is not the same thing as the outstanding liability at a later date. Repayments and restructuring have taken place under the facilities,” the statement said.
It added that calculating the state’s debt by adding the full ₦206.78 billion approved facility to the latest DMO debt stock without establishing actual drawdowns, repayments and outstanding balances would be misleading.
“The State Government has continued to honour its repayment obligations in accordance with the applicable financing arrangements,” it said.
The government also addressed reports concerning a proposed ₦350 billion capital-market financing programme.
It said Taraba had not received the full ₦350 billion and that the programme remained subject to regulatory, statutory, market and disclosure requirements.
According to the government, the proposed programme is structured to allow financing to be raised in stages, subject to approvals and market conditions, with an initial tranche of approximately ₦35 billion under consideration.
“It is therefore incorrect to treat the entire ₦350 billion programme size as money already received by the State or as an existing drawn liability,” the government said.
The state also disclosed that it signed three financing agreements with the ECOWAS Bank for Investment and Development on June 26, 2026, with a combined value of approximately US$268 million.
The financing package is intended to support Phase I of an integrated industrial park, irrigated rice production and processing, and a 50-megawatt solar power project.
However, the government noted that signing financing agreements does not automatically mean the funds have been disbursed.
“The facilities remain subject to applicable conditions precedent, regulatory processes, and statutory approvals before drawdown,” it said.
The government warned against presenting undisbursed financing as money already received and spent by the state.
It identified four separate categories that should be distinguished when assessing public debt: existing debt stock, approved facilities, outstanding balances, and proposed or undisbursed financing.
“Adding the headline values of all these categories together and describing the result as Taraba State’s current debt would not present an accurate picture of the State’s financial position,” it said.
The Kefas administration said its borrowing decisions were guided by development needs, repayment capacity, transparency and accountability.
It said new borrowing would be tied to productive infrastructure, economic expansion and improvements in residents’ welfare, while revenue projections and debt-service obligations would be considered before additional liabilities are assumed.
The government said it welcomed scrutiny of its finances but insisted that such scrutiny must be based on verifiable facts.
It said the key questions should include how much was approved, how much was actually drawn, how much had been repaid, the outstanding balance, the amount yet to be disbursed, the projects being financed and the state’s repayment capacity.
The administration reaffirmed its commitment to responsible financing, disciplined debt management, transparency and prudent use of public resources for the development of Taraba State.
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