By Terna Chikpa
The Taraba State Government has described claims by opposition parties that the state currently has a debt burden of ₦1.2 trillion as fake news.
The Commissioner for Finance, Dr. Serah Adi, stated this on Sunday in Jalingo, saying the claim did not reflect the state’s debt stock as reported in the latest records of the Debt Management Office.
Adi urged Tarabans to disregard the opposition’s claim, describing it as “fake, misleading and an attempt to attract cheap sympathy ahead of the 2027 elections.”
“The claims by opposition parties about the state’s debt profile are fake news. Their reports are blatant lies, misleading and do not reflect the state’s debt stock as reported in the latest records of the Debt Management Office.
“Their claim is a mere attempt to attract cheap sympathy, since they lack facts to criticise the Kefas-led administration.
“I wish to urge Tarabans and Nigerians in general to disregard the claims by the opposition that Governor Agbu Kefas’ administration currently has a debt burden of ₦1.2 trillion.
“Under Governor Kefas, the administration is ensuring prudence in all its financial records to ensure that every kobo spent is for the development of the state,” Dr. Adi stated.
The commissioner explained that the Kefas administration was rather reducing the state’s inherited debt burden, contrary to the opposition’s claims.
She disclosed that the state’s domestic debt stock had dropped from ₦87.96 billion to ₦85.51 billion, representing a reduction of approximately ₦2.45 billion from the figure reported in 2023.
“Available records from the Debt Management Office show that, as of 2023, Taraba State’s domestic debt stock was ₦87.96 billion, while the latest data published as of December 31, 2025, put the domestic debt stock at ₦85.51 billion, approximately ₦2.45 billion lower than the earlier reported figure.
“On the external debt, the Debt Management Office reported that Taraba State’s external debt was 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. This represents a relatively modest movement in the state’s external debt position over the period.
“The state government remains conscious of the 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,” she said.
Adi further clarified that in 2023, the Taraba State House of Assembly approved financing facilities totalling approximately ₦206.78 billion 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 proceeds, Value Added Tax receipts and internally generated revenue.
“An important distinction here is that approval or the 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,” the commissioner said.
On reports concerning a proposed capital-market financing programme of up to ₦350 billion, Adi clarified that the state had not received the entire amount.
“There has also been considerable public discussion about a proposed capital-market financing programme of up to ₦350 billion. I wish to clarify here 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,” she stated.
The commissioner also disclosed that the Taraba State Government and the ECOWAS Bank for Investment and Development signed three financing agreements totalling approximately US$268 million on June 26, 2026.
She said the financing package was intended to support Phase I of an integrated industrial park, the development of irrigated rice production and processing, and a 50-megawatt solar power project in the state.
Adi cautioned that signing a financing agreement should be distinguished from actual disbursement, noting that the facilities remained subject to applicable conditions precedent, regulatory processes and statutory approvals before drawdown.
“The amounts have not been disbursed and, therefore, should not be represented to the public as money already received and spent by the Taraba State Government,” she said.
The commissioner said four separate concepts should not be conflated in determining the state’s debt position.
“Existing debt stock refers to liabilities officially recognised and reported as outstanding debt.
“An approved facility is an amount authorised for borrowing, which may or may not have been fully drawn.
“An outstanding balance is what remains payable after accounting for actual drawdowns, repayments, restructuring and other adjustments.
“Proposed or undisbursed financing refers to financing arrangements that have not yet translated into funds received by the state.
“It is purely fake news to add the headline values of all these categories together and describe the result as Taraba State’s current debt,” she said.
Adi said the Kefas administration remained guided by principles of fiscal responsibility in its borrowing decisions.
According to her, borrowing must support measurable development, while financing undertaken by the state must be linked to productive infrastructure, economic expansion and improvements in the welfare of the people.
She added that repayment capacity would continue to guide the state’s 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.
“I wish to state here that, under Governor Agbu Kefas, 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 commissioner clarified.
