Taraba owes ₦85.5bn, not ₦1.2tn — Commissioner
Taraba State Commissioner for Finance, Dr. Sarah Enoch Adi, addressed discrepancies in public discourse regarding the state's debt levels during a fiscal briefing. She refuted claims that the state owed ₦1.2tn, stating that the latest Debt Management Office (DMO) data shows a domestic debt of ₦85.51bn as of December 31, 2025, significantly lower than the claimed figure. Adi emphasized the need to differentiate between existing debt, approved credit facilities, and outstanding balances, noting that some facilities involve future drawdowns based on revenue streams. She also mentioned the state's external debt of around $48.04m and highlighted concerns over exchange rate risks. Adi clarified that approved commercial bank facilities totaling ₦206.78bn do not equate to current liabilities, as they involve structured repayment plans. Additionally, she debunked rumors about a ₦350bn capital-market financing program, stating the state had not received any funds yet.
Taraba State has denied allegations that it is burdened with a staggering N1.2 trillion in debt, calling the claim misleading and unsupported by official records. The state government, led by Governor Agbu Kefas, has refuted the figure, stating that the true domestic debt stands at N85.51 billion as of December 31, 2025, according to the Debt Management Office (DMO). This comes amid growing political discourse over the state's financial health, particularly following statements from opposition leaders who cited the N1.2 trillion figure as evidence of mismanagement. Dr. Sarah Adi, the Commissioner for Finance, Budget and Economic Planning, addressed journalists in Jalingo last weekend, clarifying the confusion surrounding the state’s debt profile. She emphasized that the N1.2 trillion number conflates several categories, existing debt, approved credit facilities, outstanding balances, and undrawn financing, which are distinct in accounting terms. Adi pointed out that the DMO data shows a decline in domestic debt since the start of the current administration, from N87.96 billion in early 2022 to N85.51 billion at the end of 2025. The commissioner further noted that the state’s external debt increased slightly from $46.47 million in December 2022 to $48.04 million by December 2025. While this represents a marginal rise, it is far removed from the N1.2 trillion figure being circulated. Adi warned against conflating the total value of approved financing with the actual outstanding liabilities, stressing that many of these facilities involve repayments, restructuring, and partial drawdowns. A key point of contention revolves around the N206.78 billion commercial bank facility approved by the Taraba State House of Assembly in 2023. This arrangement involves multiple banks including Zenith Bank, United Bank for Africa, Fidelity Bank, and Keystone Bank. However, Adi clarified that the approved limit does not equate to the state’s current liabilities. Repayments and restructuring efforts have already taken place, and the government continues to meet its obligations under the agreed financing terms. Additionally, there has been speculation about a proposed N350 billion capital-market financing program. Adi stated that the state has not yet received the full N350 billion, explaining that the initiative is still pending regulatory approvals and market conditions. She indicated that the immediate focus is on securing an initial tranche of about N35 billion, rather than treating the entire N350 billion as an already realized liability. Another area of discussion is the $268 million financing agreement signed with the ECOWAS Bank for Investment and Development (EBID) in June 2026. This funding is earmarked for projects such as an integrated industrial park, irrigated rice production, and a 50-megawatt solar power plant. Despite the agreement, Adi confirmed that the funds remain undisbursed, pending fulfillment of certain prerequisites and regulatory clearances. The state government has consistently maintained that its borrowing practices are aligned with fiscal discipline and transparent management. Borrowings are directed toward productive infrastructure, supported by repayment capacity and compliance with statutory disclosure requirements. Adi reiterated the administration’s commitment to ensuring that all financial activities are conducted responsibly and in line with established economic principles. While the government welcomes scrutiny of its financial affairs, it insists that such evaluations must be grounded in accurate and verifiable information. The commissioner called for a more nuanced understanding of the state’s financial landscape, distinguishing clearly between approved facilities, outstanding liabilities, and undrawn commitments. As the debate over Taraba’s debt situation continues, the government remains focused on managing its finances prudently and advancing development projects that align with long-term economic goals. The emphasis is on maintaining fiscal stability while investing in infrastructure that supports sustainable growth.
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