The Taraba State Government has dismissed claims that it currently carries a debt burden of about ₦1.2tn, insisting that the figure does not reflect the state’s recognised debt stock in the latest publicly available records of the Debt Management Office.
The Commissioner for Budget and Economic Planning, Sarah Adi, made the clarification during a fiscal briefing in Jalingo on Saturday, urging the public to distinguish between existing debt, approved credit facilities, outstanding balances and financing arrangements that have not been disbursed.
According to Adi, the latest DMO data showed that Taraba’s domestic debt stood at approximately ₦85.51bn as of December 31, 2025.
She said this compared with about ₦87.96bn recorded in the data preceding the administration of Governor Agbu Kefas.
Adi explained that the DMO’s March 2023 publication, which had previously been cited in discussions about Taraba’s debt, represented the state’s debt position as of September 30, 2022.
“The official DMO figures therefore do not support suggestions that Taraba State’s recognised domestic debt stock has risen to anything approaching ₦1.2tn,” she said.
On external debt, the commissioner said DMO records placed Taraba’s obligation at approximately $46.47m as of December 31, 2022, rising to about $48.04m by December 31, 2025.
She, however, acknowledged that foreign-currency obligations expose the state to exchange-rate risks.
“The State Government remains conscious of exchange-rate risks associated with foreign-currency obligations and will continue to ensure that external financing is considered within the limits of fiscal sustainability and repayment capacity,” Adi said.
₦206.78bn Bank Facilities
The commissioner also addressed the ₦206.78bn in commercial bank facilities approved by the Taraba State House of Assembly in 2023.
She said the approved amount should not automatically be interpreted as the state’s current outstanding liability.
The facilities involved Zenith Bank Plc, United Bank for Africa Plc, Fidelity Bank Plc and Keystone Bank and were structured against designated revenue streams.
Adi explained that the original value approved for a facility could differ significantly from the amount eventually drawn, particularly after repayments, restructuring or other adjustments.
“Approval or original facility value is not the same thing as the outstanding liability at a later date,” she said.
₦350bn Capital-Market Programme
The commissioner also clarified reports concerning a proposed ₦350bn capital-market financing programme.
She said the state had not received the full amount, explaining that the programme remained subject to regulatory, statutory, market and disclosure requirements.
According to her, the immediate transaction under consideration involved an initial tranche of approximately ₦35bn.
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“It is therefore incorrect to treat the entire ₦350bn programme size as money already received by the State or as an existing drawn liability,” she said.
$268m ECOWAS Bank Financing
Adi further explained the status of $268m financing agreements signed between the Taraba State Government and the ECOWAS Bank for Investment and Development on June 26, 2026.
She said the financing was intended to support the first phase of an integrated industrial park, irrigated rice production and processing, as well as a 50-megawatt solar power project.
However, she stressed that signing a financing agreement did not automatically mean the funds had been disbursed.
“The signing of a financing agreement must, however, be distinguished from actual disbursement,” she said.
According to the commissioner, the facilities remain subject to applicable conditions precedent, regulatory processes and statutory approvals before any drawdown can take place.
Government Defends Debt Management
Adi urged Nigerians to distinguish between existing debt stock, approved facilities, outstanding balances and proposed or undisbursed financing.
She warned that combining headline figures from these different categories and presenting the total as Taraba’s current debt could create a misleading picture of the state’s financial position.
She said the relevant questions should include how much was approved, how much was actually drawn, how much had been repaid, what remained outstanding, what funds had not been disbursed and which projects were being financed.
According to her, the administration of Governor Agbu Kefas remains committed to ensuring that borrowing supports measurable development while repayment capacity guides financing decisions.
Adi also pledged that transparency, accountability and prudent management of public resources would remain central to the state’s borrowing strategy.
She assured residents that the government would continue to pursue responsible financing and disciplined debt management while using available resources to support infrastructure and economic development across Taraba State.