THE Taraba State Government has dismissed allegations by opposition parties that the state has accumulated a debt burden of more than N1.2 trillion within three years under the administration of Governor Agbu Kefas.
News Point Nigeria reports that the government described the claim as false, misleading and capable of inciting the public against the administration, insisting that the figure does not reflect Taraba’s actual debt position.
The State Commissioner for Finance, Budget and Economy, Sarah Adi, made the clarification in a statement, urging politicians to verify official data before presenting financial information to the public.
She stressed that data from the Debt Management Office (DMO) showed that as of December 31, 2025, Taraba’s domestic debt stood at approximately N85.51 billion, about N2.45 billion lower than the September 2022 figure inherited by the current administration.
The government also urged politicians to campaign with facts and figures rather than deceive unsuspecting residents with misleading information capable of generating hatred and disbelief among the populace.
“The Taraba State Government has taken note of recent public commentary concerning the debt and financing position of the State.
“The Government welcomes legitimate scrutiny of public finances. However, public discussion must distinguish between existing debt, approved facilities, outstanding balances, and financing arrangements that have not yet been drawn down.
“For the avoidance of doubt, the claim that Taraba State currently carries a debt burden of about ₦1.2 trillion does not reflect the State’s debt stock reported in the latest publicly available records of the Debt Management Office.
“According to the Debt Management Office, Taraba State’s reported domestic debt stock was approximately ₦87.96 billion in the DMO data available immediately preceding the present administration,” she said.
Adi noted that the DMO had clarified in the relevant report that the Taraba figure contained in its March 2023 publication was reported as of September 30, 2022.
“In the latest publicly available DMO data, as at 31 December 2025, Taraba State’s domestic debt stock stood at approximately ₦85.51 billion.
“This is approximately ₦2.45 billion lower than the earlier reported figure. The official DMO figures therefore do not support suggestions that Taraba State’s recognised domestic debt stock has risen to anything approaching ₦1.2 trillion.”
The government also addressed the state’s external debt position, saying the DMO reported Taraba’s external debt at approximately US$46.47 million as of December 31, 2022.
By December 31, 2025, the state’s external debt stood at approximately US$48.04 million, representing what the government described as a relatively modest movement in its external debt position over the period.
The government said it remained conscious of exchange-rate risks associated with foreign-currency obligations and would continue to ensure that external financing was considered within the limits of fiscal sustainability and repayment capacity.
Adi also explained the N206.78 billion financing facilities approved by the Taraba State House of Assembly in 2023.
She said the facilities involved Zenith Bank Plc, United Bank for Africa Plc, Fidelity Bank Plc and Keystone Bank, and were structured against designated revenue streams, including Federal Account Allocation, Joint Account Allocation Committee proceeds, Value Added Tax receipts and Internally Generated Revenue.
The government, however, stressed the distinction between an approved facility and an outstanding liability.
“Approval or original facility value is not the same thing as the outstanding liability at a later date. Repayments and restructuring have taken place under the facilities.
“Accordingly, it would be misleading to take the original approved amount of ₦206.78 billion and simply add it in full to the latest DMO debt stock without establishing the amount actually drawn, amounts already repaid, and the current outstanding balances.”
The State Government said it had continued to honour its repayment obligations in accordance with the applicable financing arrangements.
The government also addressed public discussion surrounding a proposed capital-market financing programme of up to N350 billion.
It said Taraba State had not received N350 billion from the proposed bond programme, stressing that the programme remained subject to applicable regulatory, statutory, market and disclosure processes.
According to the government, the programme was designed as a framework under which financing could be raised in stages, subject to approvals and prevailing market conditions.
It said the immediate transaction under consideration was an initial tranche of approximately N35 billion.
“It is therefore incorrect to treat the entire ₦350 billion programme size as money already received by the State or as an existing drawn liability,” the government said.
The government further clarified the three financing agreements signed between Taraba State and the ECOWAS Bank for Investment and Development on June 26, 2026.
The agreements, totalling approximately US$268 million, are intended to support Phase I of an integrated industrial park, the development of irrigated rice production and processing, and the development of a 50-megawatt solar power project in the state.
It stressed, however, that the signing of financing agreements must be distinguished from actual disbursement.
“The facilities remain subject to applicable conditions precedent, regulatory processes, and statutory approvals before drawdown.
“Therefore, amounts that have not been disbursed should not be represented to the public as money already received and spent by the Taraba State Government.”
The government said four separate concepts should not be conflated when assessing Taraba’s financial position.
It explained that existing debt stock refers to liabilities officially recognised and reported as outstanding debt, while an approved facility is an amount authorised for borrowing that may or may not have been fully drawn.
An outstanding balance, according to the government, is what remains payable after accounting for actual drawdowns, repayments, restructuring and other adjustments.
Proposed or undisbursed financing, it added, refers to financing arrangements that have not yet translated into funds received by the state.
“Adding the headline values of all these categories together and describing the result as Taraba State’s current debt would not present an accurate picture of the State’s financial position.”
The administration of Governor Agbu Kefas, the government said, remains guided by three principles in its approach to borrowing and financing.
First, borrowing must support measurable development, with financing undertaken by the state linked to productive infrastructure, economic expansion and improvements in the welfare of the people.
Second, repayment capacity must guide financing decisions.
The government said revenue projections, debt-service obligations and the sustainability of the state’s finances would continue to be considered before new liabilities are assumed.
Third, it said transparency and accountability remain essential.
“Government will continue to comply with legislative, regulatory and disclosure requirements applicable to public borrowing and capital-market transactions.”
The government said it welcomed scrutiny but insisted that such scrutiny must be based on facts.
It said the appropriate questions should go beyond the headline amount of a proposed facility to establish how much was approved, how much was actually drawn, how much had been repaid, how much remained outstanding, what had not yet been disbursed, what projects were being financed and what the state’s repayment capacity was.
“The proper questions are not simply the headline amount of a proposed facility, but: How much was approved? How much was actually drawn? How much has been repaid? How much remains outstanding? What has not yet been disbursed? What projects are being financed? And what is the State’s repayment capacity?”
The Taraba State Government reiterated its commitment to responsible financing, disciplined debt management, transparency and the prudent use of public resources for the development of the state.