TARABA GOV CLARIFIES DEBT POSITION, SAYS BORROWING TIED TO DEVELOPMENT
The Taraba State Government has dismissed claims that the administration of Governor Agbu Kefas has accumulated a debt burden of about N1.2 trillion, describing the figure as inconsistent with official records of the Debt Management Office (DMO).
The Commissioner for Finance, Dr Sarah Adi Enoch, said the state’s domestic debt stood at N85.51 billion, representing a reduction of about N2.45 billion from the approximately N87.96 billion recorded before the administration assumed office.
She explained that the DMO’s March 2023 publication reflected Taraba’s debt position as of September 30, 2022, and therefore should not be presented as a current figure.
According to the Commissioner, Taraba’s external debt stood at $46.47 million as of December 31, 2022, compared with $48.04 million as of December 31, 2025. She said the state would continue to keep external borrowing within the limits of fiscal sustainability and its repayment capacity.
Addressing the controversial N206.78 billion commercial bank facility, Dr Enoch said the financing was approved by the Taraba State House of Assembly in 2023 and involved Zenith Bank Plc, United Bank for Africa Plc, Fidelity Bank Plc and Keystone Bank.
She explained that the facilities were structured against designated revenue streams, including Federal Account Allocation, JAAC proceeds, VAT and Internally Generated Revenue, stressing that the approved facility value should not be confused with the state’s current outstanding liability.
“Governor Agbu Kefas has only collected N206 billion from commercial banks, and we are about to complete the repayment,” she said, noting that repayments and restructuring had altered the outstanding balances.
On the proposed N350 billion capital-market programme, the Commissioner clarified that Taraba had not received the full amount, adding that the immediate transaction under consideration was an initial tranche of about N35 billion. She therefore cautioned against treating the entire programme size as money already received or as an existing liability.
Dr Enoch also explained that the three financing agreements totalling about $268 million signed with the ECOWAS Bank for Investment and Development (EBID) on June 26, 2026, are intended to support the first phase of an integrated industrial park, irrigated rice production and processing, and a 50-megawatt solar power project.
She stressed that signing financing agreements does not amount to the actual disbursement of funds.
The Commissioner said the Kefas administration’s borrowing policy is anchored on three principles: financing must support measurable development; repayment capacity must guide borrowing decisions; and transparency and accountability must remain central to all public financing.
She assured that the government would continue to comply with legislative, regulatory and disclosure requirements governing public borrowing and capital-market transactions.
While acknowledging the importance of public scrutiny, Dr Enoch urged politicians and other stakeholders to base their criticism on verified facts and official records.
She reaffirmed the government’s commitment to responsible financing, disciplined debt management, transparency and the prudent use of public resources for the development of Taraba State.
