The Taraba State government has dismissed allegations by opposition parties that the state has a debt burden to the tune of over N1.2 trillion in just three years under the current administration.

Describing the claim as fake, misleading, and inciting the public against the government, the State Commissioner for Finance, Budget and Economy, Sarah Adi, in a statement, insisted the allegation does not reflect Taraba’s actual debt status and urged politicians to verify data before presenting it to the public.

She stressed that the Debt Management Office data shows that as at 31 December 2025, the domestic debt stood at approximately N85.51 billion, about N2.45 billion lower than the September 2022 figure it inherited.

The Government also urged politicians to campaign with facts and figures rather than deceive unsuspecting residents with misleading facts that will invite 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 noted that the DMO had clarified in the relevant report that the Taraba figure contained in its March 2023 publication was reported as at 30 September 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 Debt Management Office reported Taraba State’s external debt at approximately US$46.47 million as at 31 December 2022. By 31 December 2025, the State’s external debt stood at approximately US$48.04 million.

“This represents a relatively modest movement in the State’s external debt position over the period.”

The government said it remained conscious of exchange-rate risks associated with foreign-currency obligations and will continue to ensure that external financing is considered within the limits of fiscal sustainability and repayment capacity

” In 2023, the Taraba State House of Assembly granted approval for financing facilities of approximately ₦206.78 billion involving Zenith Bank Plc, United Bank for Africa Plc, Fidelity Bank Plc, and Keystone Bank.

“The facilities were structured against designated revenue streams, including Federal Account Allocation, Joint Account Allocation Committee proceeds, Value Added Tax receipts, and Internally Generated Revenue.

” Government wishes to make an important distinction: 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 has continued to honour its repayment obligations in accordance with the applicable financing arrangements ”

” There has also been considerable public discussion about a proposed capital-market financing programme of up to ₦350 billion.

“Government wishes to state clearly that: Taraba State has not received ₦350 billion from the proposed bond programme. The programme remains subject to applicable regulatory, statutory, market, and disclosure processes. It is designed as a programme under which financing may be raised in stages, subject to approvals and market conditions. The immediate transaction under consideration is an initial tranche of approximately ₦35 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.

” On 26 June 2026, the Taraba State Government and the ECOWAS Bank for Investment and Development signed three financing agreements totalling approximately US$268 million.

“The financing package is intended to support Phase I of an integrated industrial park; development of irrigated rice production and processing; and development of a 50-megawatt solar power project in the state. The signing of a financing agreement must, however, 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.

” Four separate concepts should not be conflated: Existing debt stock: Liabilities officially recognised and reported as outstanding debt. Approved facility: An amount authorised for borrowing, which may or may not have been fully drawn.

“Outstanding balance: What remains payable after accounting for actual drawdowns, repayments, restructuring and other adjustments. Proposed or undisbursed financing: 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 His Excellency, Dr. Agbu Kefas, remains guided by three principles. First, borrowing must support measurable development. Financing undertaken by the State must be linked to productive infrastructure, economic expansion and improvements in the welfare of the people.

“Second, repayment capacity must guide financing decisions. Revenue projections, debt-service obligations and the sustainability of the State’s finances will continue to be considered before new liabilities are assumed.

“Third, 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; however, it must be based on facts.

“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 government said it remained committed to responsible financing, disciplined debt management, transparency and the prudent use of public resources for the development of Taraba State.