Key points
- Taraba Government says claims that it borrowed N1.2 trillion in three years are inaccurate.
- The state says its domestic debt stood at N85.51 billion as of Dec. 31, 2025.
- Government says approved credit facilities and proposed financing should not be treated as existing debt.
- The Finance Commissioner says the state’s borrowing policy is guided by development needs and repayment capacity.
Main story
The Taraba Government has rejected claims that it borrowed N1.2 trillion within three years, saying the figure combines different categories of financing that do not represent the state’s actual debt burden.
Commissioner for Finance, Dr Sarah Adi, dismissed the claim as inaccurate and misleading while addressing journalists in Jalingo on Sunday.
Adi said the latest data from the Debt Management Office (DMO) showed that Taraba’s domestic debt stood at N85.51 billion as of Dec. 31, 2025.
She said the figure was about N2.45 billion lower than the N87.96 billion domestic debt recorded in DMO data covering the period before Gov. Agbu Kefas assumed office.
According to her, the DMO report published in March 2023 reflected the state’s debt position as of Sept. 30, 2022, rather than its position when the report was released.
On external debt, Adi said Taraba’s obligations rose from about $46.47 million at the end of 2022 to approximately $48 million by Dec. 31, 2025.
She described the increase as relatively modest but noted that exchange-rate movements could affect the naira value of the state’s external obligations.
Adi also disputed the treatment of a N206.78 billion commercial bank financing facility approved by the Taraba State House of Assembly in 2023 as current outstanding debt.
She said the facilities involving Zenith Bank, United Bank for Africa, Fidelity Bank and Keystone Bank were backed by designated revenue streams.
The commissioner explained that an approved facility does not necessarily represent the amount currently owed because the actual liability depends on how much was disbursed, repayments made, restructuring and outstanding balances.
She also clarified reports that the state had received N350 billion through a proposed capital-market financing programme.
According to her, the programme remains subject to regulatory, statutory, market and disclosure requirements, with funding expected to be raised in stages.
Adi said an initial tranche of about N35 billion was under consideration and that the N350 billion programme size should not be interpreted as money already received by the state.
The commissioner similarly clarified three financing agreements worth about $268 million signed with the ECOWAS Bank for Investment and Development (EBID) on June 26, 2026.
She said the facilities were intended to finance an integrated industrial park, irrigated rice production and processing, and a 50-megawatt solar power project.
Adi stressed that signing the agreements did not mean the funds had already been disbursed, saying drawdowns remained subject to conditions precedent, regulatory procedures and statutory approvals.
She said Taraba’s financial position should be assessed by distinguishing between existing debt stock, approved facilities, outstanding balances and proposed or undisbursed financing.
According to her, combining figures from the four categories could create a distorted picture of the state’s actual debt burden.
The issues
The dispute centres on how government financing figures are classified. An approved loan facility, a proposed financing programme and a signed but undisbursed loan are not automatically equivalent to outstanding debt. Taraba’s Finance Commissioner therefore argued that the state’s debt position should be assessed using actual disbursements and outstanding balances rather than headline values attached to financing programmes.
What’s being said
“The figure represents a reduction of about N2.45 billion from the N87.96 billion domestic debt recorded in DMO data available before Gov. Agbu Kefas assumed office.” – Sarah Adi, Taraba Commissioner for Finance:
“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.” – Sarah Adi, Taraba Commissioner for Finance:
“The facilities are intended to finance an integrated industrial park, irrigated rice production and processing, and a 50-megawatt solar power project.” – Sarah Adi, Taraba Commissioner for Finance:
What’s next
The Taraba Government is expected to continue defending its borrowing position using verified debt and financing records as scrutiny of the state’s finances continues.
Bottom line
Taraba says the N1.2 trillion borrowing claim overstates its actual debt by treating approved, proposed and undisbursed financing as though they were existing liabilities. The state says its verified domestic debt stood at N85.51 billion at the end of 2025.
