Taraba Denies N1.2trn Debt

The Taraba State Government has dismissed reports suggesting that the state currently carries a debt burden of about N1.2 trillion, saying the claim does not reflect its officially recognised debt stock as contained in the latest publicly available records of the Debt Management Office (DMO).

The government, in a fiscal and public finance update issued in Jalingo, by the Commissioner of Finance budget and economic planning, Dr Sarah Adi Enoch, said Taraba’s domestic debt stood at N85.51 billion as of December 31, 2025.

According to her, this representing a reduction of about N2.45 billion from the approximately N87.96 billion reported before the administration of Governor Agbu Kefas came into office.

She explained that, the DMO had clarified that the Taraba debt figure contained in its March 2023 publication was actually based on the state’s position as of September 30, 2022.

According to the government, the latest DMO data showed that the state’s domestic debt stock as of December 31, 2025, was approximately N85.51 billion.

“The official DMO figures therefore do not support suggestions that Taraba State’s recognised domestic debt stock has risen to anything approaching N1.2 trillion,” the commissioner stated.

On the state’s external debt, the government said, the DMO had placed Taraba’s external debt at approximately $46.47 million as of December 31, 2022, compared with $48.04 million as of December 31, 2025.

The Finance Commissioner then described the movement in the external debt position as relatively modest, while acknowledging the exchange rate risks associated with foreign currency obligations.

Dr Enoch, said the state would continue to ensure that external financing remained within the limits of fiscal sustainability and its repayment capacity.

On the controversial N206.78 billion commercial bank facility, she explained that the Taraba State House of Assembly approved the financing facilities in 2023 involving Zenith Bank Plc, United Bank for Africa Plc, Fidelity Bank Plc and Keystone Bank.

According to her, the facilities were structured against designated revenue streams, including Federal Account Allocation, Joint Account Allocation Committee (JAAC) proceeds, Value Added Tax (VAT) receipts and Internally Generated Revenue (IGR).

She, however, cautioned against equating the original approved facility value with the state’s current outstanding liability.

“Approval or original facility value is not the same thing as the outstanding liability at a later date, as repayments and restructuring had taken place under the facilities,” she added.

Dr Enoch argued that it would be misleading to add the entire N206.78 billion approved in 2023 to the latest DMO debt stock without establishing the actual amount drawn, repayments already made and current outstanding balances.

“The State Government has continued to honour its repayment obligations in accordance with the applicable financing arrangements,” sheadded.

On the proposed N350 billion capital-market programme, the government clarified that Taraba had not received N350 billion under the proposed bond programme.

She said, the programme remained subject to applicable regulatory, statutory, market and disclosure processes and was designed to enable the state raise funds in stages, depending on approvals and prevailing market conditions.

According to the government, the immediate transaction under consideration is an initial tranche of approximately N35 billion.

“It is therefore incorrect to treat the entire N350 billion programme size as money already received by the State or as an existing drawn liability,” she stated.

The Finance Commissioner also addressed the three financing agreements totalling approximately $268 million signed between Taraba State and the ECOWAS Bank for Investment and Development (EBID) on June 26, 2026.

She maintained the financing package was intended to support the first phase of an integrated industrial park, development of irrigated rice production and processing and a 50-megawatt solar power project in the state.

She however, stressed that the signing of financing agreements should not be confused with actual disbursement of funds.