Taraba’s 3-Year Fiscal Journey: Growth, Reforms And Public Concern

About two weeks ago, an article circulated on social media criticising the Taraba State Government over alleged gaps in budget implementation since the assumption of office of Governor Agbu Kefas on May 29th 2023.

The piece, authored by Mr Asogya Manasseh Wunuji and titled “Taraba’s Three-Year Scorecard: Budget Gaps, Low Revenue and Borrowing Raise Concerns Over Project Delivery,” questioned the state’s fiscal performance between 2023 and 2025. It cited inconsistencies in budget execution, ambiguous spending patterns and concerns over project delivery.

While public scrutiny remains a vital component of democratic governance, fiscal analysis must be grounded in accurate data and a clear understanding of public finance frameworks. Although the author attempted to examine the administration’s performance, questions have arisen about the sources and interpretations of the financial data cited, particularly because some of the figures cited are said to be inconsistent with records available at the Taraba State Ministry of Finance, Budget and Economic Planning.

This counter-budget criticism is not issued on behalf of the state government, but rather seeks to provide context for issues raised, especially as they relate to fiscal responsibility, statutory reporting procedures, and prevailing macroeconomic realities.

The Ministry of Finance, Budget and Economic Planning, under the supervision of Dr Sarah Enoch, has consistently maintained that budget performance figures must be interpreted in the context of broader national economic conditions. Nigeria’s sub-national governments, including Taraba State, have in recent years operated under significant fiscal pressures, including the removal of fuel subsidy, exchange rate volatility and rising inflation.

According to a budget expert and the Permanent Secretary (Budget) of the Ministry, Mr Danjuma Saigudu, public scrutiny is welcome. Still, fiscal data must be assessed within established reporting frameworks to avoid misleading conclusions.

He noted that the 2023 fiscal year represented a transition period marked by inherited obligations, ongoing contractual liabilities and macroeconomic shocks.

Although the 2023 budget was over N173 billion, the Annual Financial Statement (AFS) shows total expenditure of N94.33 billion, with capital expenditure of N35.62 billion, representing 26.71 per cent performance.

The ministry emphasised that this figure reflected deliberate fiscal prioritisation aimed at stabilising state finances, clearing outstanding commitments and restructuring key sectors.

In 2024, capital expenditure rose significantly. The AFS indicates total capital spending of N224.73 billion, representing 45.89 per cent implementation. The increase from approximately 27 per cent in 2023 to nearly 46 per cent in 2024 demonstrates improved financial management systems, enhanced coordination and strengthened project execution capacity.

Regarding the 2025 fiscal year, Mr Saigudu explained that budget expansion was driven by improved revenue projections, federal reforms and supplementary appropriations intended to accelerate infrastructure delivery.

However, implementation rates are determined by actual revenue inflows rather than projections, while budget figures represent spending ceilings, not automatic cash availability.

Available records from the ministry show capital expenditure rising steadily from about N35 billion in 2023 to N224.73 billion in 2024 and N77 billion in 2025, representing more than a fivefold increase within three years. The 2025 capital expenditure is expected by July 2026.

It shows that capital allocations that are not fully utilised within a fiscal year are not necessarily abandoned, as most infrastructure projects are multi-year and tied to procurement processes, contractor mobilisation, and performance milestones. Also, prudent fiscal management discourages reckless year-end spending merely to inflate performance ratios.

Even though the 2025 Annual Financial Statement is yet to be finalised and published, it is prepared by the Office of the Accountant-General and certified by the Auditor-General within six months after the end of the fiscal year, to allow for comprehensive reconciliation of financial data.

The 2023 and 2024 AFS reports are already published and publicly accessible, while the 2025 report will be released within the statutory timeframe.

On Internally Generated Revenue (IGR), the state recorded consistent growth over the past three years. Available data indicate that IGR stood at N10 billion in 2023, increased to N17.46 billion in 2024 and reached N17.9 billion in 2025 as at the reporting period. The improvement has been attributed to structural reforms in tax administration, the automation of revenue systems, and the expansion of the tax net.

The 2026 IGR projection of about N58.6 billion is anchored on ongoing digitalisation, enforcement reforms and strategic investments, aimed at widening the state’s revenue base and reducing dependence on FAAC allocations. The government has also implemented measures to block financial leakages and reduce the cost of governance, which it hopes will improve the state‘s revenue profile.

The budget projections for 2026 are based on key macroeconomic assumptions, including oil production, international oil prices, exchange rates, growth rates, and inflation. Variations between projected and actual performance are common in public finance management and are influenced by external variables.

As Mr Saigudu observed, achieving 100 per cent budget performance is rare globally, with performance ratios typically ranging between 60 and 99 per cent.

On borrowing and debt servicing, Mr Saigudu reiterated that borrowing remains a lawful and globally accepted instrument for financing capital-intensive development projects.

All borrowing processes comply with due process requirements, including legislative approval by the State House of Assembly and adherence to the Debt Management Office‘s guidelines and sustainability benchmarks. As a result, approved borrowing ceilings do not automatically translate into full debt drawdowns, as access to facilities depends on project readiness.

Concerning the proposed bond issuance, it is established that no funds have yet been accessed. A bond cannot be considered borrowed until it is formally issued in the securities market following regulatory approval processes involving the Federal Ministry of Finance.

On financing budget deficits, which involves aggregating expected income from IGR and FAAC, estimating recurrent expenditure and transferring the balance to capital expenditure. Whereas the deficits arise, borrowing is projected as a fiscal provision subject to approval and due process, not as funds already collected.

While closing balances and unspent funds must also be understood within the context of statutory commitments, contractual obligations, salary stabilisation provisions and counterpart funding reserves, thereby maintaining prudent balances that enhance liquidity management and protect the state from cash flow shocks, rather than signifying project abandonment.

Governor Kefas’ administration has, since the assumption of office, prioritised transparency and accountability through quarterly budget performance reporting, legislative oversight, audit compliance, procurement reforms and strengthened monitoring and evaluation systems.

As far as the Ministry is concerned, financial records are routinely furnished to the Office of the Accountant-General and the Debt Management Office, and made available on the state‘s official platforms for anyone to see.

Moreover, as analysts have described the proposed N653 billion 2026 budget as reform-driven and focused on infrastructure expansion and human capital development, it is imperative to acknowledge that fiscal management is not without challenges. The government maintains that its financial strategy is guided by prudence, sustainability and measurable development outcomes.

According to the ministry, Taraba State remains on a trajectory of fiscal consolidation, revenue expansion, and responsible capital investment, with a continued commitment to transparency and the delivery of tangible improvements in education, healthcare, road rehabilitation, security support, and civil service reforms.