Taraba Debt: Commissioner Rejects ₦1.2tn Claim, Gives State’s Actual Debt Figures

Taraba Debt: Commissioner Rejects ₦1.2tn Claim, Gives State’s Actual Debt Figures

Taraba Debt: Commissioner Rejects ₦1.2tn Claim, Explains State’s Actual Debt Position

Taraba State Commissioner Sarah Adi rejects claims of a ₦1.2tn debt burden, explaining the state's actual debt, bank facilities, capital-market plans and EBID financing.

Taraba State Commissioner for Budget and Economic Planning, Sarah Adi, has rejected claims that the state currently has a debt burden of about ₦1.2 trillion, describing the figure as misleading and inconsistent with the latest publicly available records from the Debt Management Office.

Adi made the clarification during a fiscal briefing in Jalingo on Saturday, where she addressed growing public discussions surrounding Taraba State’s borrowing, approved credit facilities, capital-market plans and foreign financing agreements.

The commissioner said the controversy appeared to stem largely from the practice of combining different categories of financing and presenting them as though they represented the state’s existing debt stock.

According to her, there is an important distinction between existing debt, approved credit facilities, outstanding balances, proposed financing and funds that have not yet been disbursed.

She urged members of the public to examine those categories separately when assessing the financial position of the state.

Taraba’s Domestic Debt Is About ₦85.51bn, Commissioner Says

Adi said the latest Debt Management Office data showed that Taraba State’s domestic debt stood at approximately ₦85.51 billion as of December 31, 2025.

She compared the figure with about ₦87.96 billion contained in the earlier debt data preceding the current administration.

The commissioner also explained that some references to previous DMO publications had been misunderstood.

She said the DMO clarified that the Taraba debt figure contained in its March 2023 publication represented the state’s debt position as of September 30, 2022, rather than a more recent debt position.

Adi therefore argued that the official debt figures do not support claims that Taraba’s recognised domestic debt stock has increased to anything close to ₦1.2 trillion.

“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.

The clarification comes amid increased public interest in the financial obligations of state governments across Nigeria, particularly as governments seek financing for infrastructure, agriculture, industrial development and other capital projects.

Taraba’s External Debt Also Remains Separate From Domestic Borrowing

The commissioner also provided an update on Taraba State’s external debt obligations.

According to Adi, DMO records showed that the state’s external debt stood at approximately $46.47 million as of December 31, 2022, rising to about $48.04 million as of December 31, 2025.

She acknowledged, however, that foreign-currency borrowing presents additional risks because movements in the exchange rate can affect the naira value of repayment obligations.

Adi said the state government was aware of the risks associated with foreign-currency liabilities and would continue to consider external financing within the limits of fiscal sustainability and its repayment capacity.

This distinction is important because domestic and external debt are reported separately, while exchange-rate movements can influence the cost of servicing obligations denominated in foreign currencies.

The commissioner said the government would continue to take those considerations into account when making financing decisions.

What Happened to the ₦206.78bn Bank Facilities?

Another major issue addressed by the commissioner was the ₦206.78 billion in commercial bank facilities approved by the Taraba State House of Assembly in 2023.

Adi cautioned against interpreting the approved amount as the state’s current outstanding debt.

She explained that the facilities involved Zenith Bank Plc, United Bank for Africa Plc, Fidelity Bank Plc and Keystone Bank, with the financing structured against designated revenue streams.

According to the commissioner, the amount originally approved for a financing facility is not necessarily the same as the amount ultimately accessed by the government.

She said there could also be differences between the amount drawn, the amount repaid and the balance outstanding at a particular point in time.

“Approval or original facility value is not the same thing as the outstanding liability at a later date,” Adi said.

Her explanation highlights a key issue in public finance reporting.

An approved loan facility represents borrowing capacity authorised under agreed terms. It does not automatically mean that the entire approved amount has been released to the government or remains outstanding.

For this reason, the commissioner urged the public to look beyond headline figures when evaluating the state's debt position.

Taraba Has Not Received the Full ₦350bn Capital-Market Programme

Adi also addressed reports concerning a proposed ₦350 billion capital-market financing programme.

She said Taraba State had not received the full ₦350 billion.

According to the commissioner, the programme remains subject to regulatory, statutory, market and disclosure requirements.

She said the immediate transaction being considered involves an initial tranche of approximately ₦35 billion, rather than the entire ₦350 billion programme being treated as an already disbursed loan.

“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.

The clarification means that the total size of a financing programme should not automatically be equated with the amount of money already accessed by a government.

Capital-market programmes can be structured in phases, with individual tranches subject to the relevant approvals, market conditions and other requirements.

Consequently, the commissioner maintained that the entire programme value should not be added to the state's existing debt stock without establishing how much has actually been drawn and remains outstanding.

₦268m ECOWAS Bank Financing Explained

The commissioner further provided details about financing agreements worth $268 million signed between the Taraba State Government and the ECOWAS Bank for Investment and Development (EBID) on June 26, 2026.

According to Adi, the financing is intended to support major development initiatives in the state.

The projects include:

- The first phase of an integrated industrial park

- Irrigated rice production and processing

- A 50-megawatt solar power project

The proposed investments are aimed at supporting economic activity, agricultural production, industrialisation and energy development in Taraba.

However, Adi stressed that signing a financing agreement does not necessarily mean that the funds have already been released.

She explained that financing agreements are usually subject to conditions that must be fulfilled before actual disbursement.

“The signing of a financing agreement must, however, be distinguished from actual disbursement,” the commissioner said.

She added that the facilities remained subject to applicable conditions precedent, regulatory processes and statutory approvals before drawdown.

This distinction, she maintained, is essential when calculating the state's actual outstanding debt.

Why Approved Loans Are Not Automatically Existing Debt

The controversy over Taraba State's debt position illustrates why public borrowing figures can sometimes be misunderstood.

A government may obtain legislative approval for a loan or financing programme without immediately drawing the entire amount.

Similarly, a financial institution may approve a facility that is accessed gradually depending on the terms of the agreement and the progress of the projects being financed.

Repayments can also reduce the outstanding balance over time.

In addition, some financing agreements may contain conditions that must be satisfied before money can be released.

For this reason, the amount approved, amount disbursed and amount outstanding can all be different figures.

Adi said these distinctions must be maintained to avoid giving the public a distorted picture of Taraba State's financial position.

Commissioner Warns Against Combining All Financing Figures

The commissioner said combining the headline figures from domestic debt, approved bank facilities, proposed capital-market financing and undisbursed external financing could produce an inflated figure that does not represent the state's actual debt stock.

She urged analysts, journalists and members of the public to examine the status of each financing arrangement before reaching conclusions about Taraba's debt burden.

According to her, the appropriate questions should include how much was approved, how much was actually drawn, how much has been repaid and what amount remains outstanding.

She also said it was necessary to establish how much of any approved financing had not yet been disbursed and identify the projects for which the funds were intended.

This approach, she argued, would provide a more accurate picture of the state's financial obligations.

Governor Kefas Administration Defends Responsible Borrowing

Adi said the administration of Governor Agbu Kefas was committed to responsible borrowing and disciplined debt management.

She explained that borrowing decisions should be linked to measurable development objectives rather than simply increasing the financial resources available to government.

According to the commissioner, repayment capacity must also be considered before financing decisions are made.

She listed transparency and accountability as key principles guiding public borrowing under the administration.

“The proper questions are not simply the headline amount of a proposed facility,” she said.

Adi said attention should instead be paid to the actual amount approved, the amount drawn, repayments already made, the outstanding balance, undisbursed funds and the specific projects being financed.

The position reflects the broader principle that public borrowing is more sustainable when it is tied to projects capable of producing measurable economic and social benefits.

What the Taraba Debt Debate Means for Residents

For residents of Taraba State, the debate over the state's debt burden is significant because public borrowing can have long-term implications for government finances.

Debt obligations can affect the amount of revenue available for public services, infrastructure, salaries, development projects and other government responsibilities.

At the same time, borrowing can provide governments with resources to finance large-scale projects that may be difficult to fund entirely from internally generated revenue and statutory allocations.

The key issue is therefore not simply whether a government has borrowed money, but how much it has borrowed, how the money is being used, the terms of the financing and whether the government can comfortably meet its repayment obligations.

This is why accurate reporting of debt figures is important.

Presenting an approved facility as an existing liability, or treating undisbursed financing as though it has already been received, can create confusion about a government's actual financial position.

Taraba Government Promises Transparency

Adi assured residents that the Taraba State Government would continue to promote transparency in its borrowing and financial management.

She said public resources must be used prudently and financing decisions must remain consistent with the state's ability to repay its obligations.

The commissioner also reiterated the government's commitment to ensuring that borrowed funds are directed toward projects capable of supporting development across the state.

With the latest clarification, the state government is seeking to draw a clear line between its recognised debt stock and the wider financing arrangements that have been approved, proposed or signed but may not yet have been fully accessed.

Bottom Line: What Is Taraba State’s Actual Debt?

Based on the figures cited by Commissioner Sarah Adi, Taraba State's domestic debt was approximately ₦85.51 billion as of December 31, 2025, while its external debt stood at approximately $48.04 million during the same period.

The commissioner maintained that the state's current recognised debt should not be calculated by simply adding the ₦206.78 billion commercial bank facilities, the proposed ₦350 billion capital-market programme and the $268 million EBID financing to those figures.

Those financing arrangements have different statuses, including approved facilities, proposed financing and agreements subject to conditions before disbursement.

The Taraba government therefore rejects the claim that the state currently carries a ₦1.2 trillion debt burden, arguing that such a calculation does not accurately reflect the state's recognised outstanding debt.

As public attention remains focused on government borrowing and fiscal management, the state says it will continue to provide clarification on its financing arrangements and ensure that borrowing decisions are guided by development priorities, repayment capacity, transparency and accountability.

FAQ.....

Is Taraba State owing ₦1.2 trillion?

The Taraba State Commissioner for Budget and Economic Planning, Sarah Adi, has rejected the claim, saying the figure does not reflect the state's recognised debt stock in the latest publicly available DMO records.

How much is Taraba State's domestic debt?

According to figures cited by Commissioner Sarah Adi, Taraba's domestic debt was approximately ₦85.51 billion as of December 31, 2025.

How much is Taraba State's external debt?

Adi said DMO data put Taraba's external debt at approximately $48.04 million as of December 31, 2025.

Did Taraba receive the entire ₦350 billion capital-market financing?

No. The commissioner said the ₦350 billion represents a proposed capital-market programme and should not be treated as money already received or as an existing drawn liability. She said an initial tranche of about ₦35 billion was under consideration.

What was the ₦206.78 billion bank facility?

The commissioner said the ₦206.78 billion represented commercial bank facilities approved in 2023 involving Zenith Bank, UBA, Fidelity Bank and Keystone Bank. She stressed that the approved facility amount should not automatically be treated as the state's current outstanding liability.

What is the $268 million EBID financing for?

According to the commissioner, the financing agreements signed with EBID are intended to support an integrated industrial park, irrigated rice production and processing, and a 50-megawatt solar power project.

Does signing a financing agreement mean the money has been received?

Not necessarily. Adi said the EBID financing remained subject to conditions precedent, regulatory processes and statutory approvals before actual drawdown.

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