A Chartered Accountant, Financial Analyst and Lecturer, Department of Accounting, Taraba State University, Mr. Olayinka Gabriel Motunrayo, has described as misleading the claims on Taraba State’s debt profile made by former lawmaker Hon. Dajuma Usman Shiddi (Danji SS).
He said that Taraba state is yet to access ₦350 billion capital market bond.
“State Debt Profile Reduced Under Governor Kefas. The allegation by former lawmaker for Wukari/Ibi Federal Constituency, Hon. Danjuma Usman Shiddi (Danji SS), claiming that Taraba State’s debt has risen to almost ₦1.2 trillion, is misleading, inaccurate, and should be disregarded in its entirety.
“His claims, contained in an open letter to the Taraba State House of Assembly, lack factual basis and appear politically motivated.
Mr. Mortunayo, who is also the CEO of Taraba News, SUM Tv, and Proprietor of Taraba Business School, further said that Taraba’s actual debt profile, according to the Debt Management Office (DMO), stands at ₦84 billion, significantly lower than that of Adamawa, Gombe, and Bauchi States within the Northeast region.
“₦350 Billion Bond Not Yet accessed contrary to Danji SS’s assertion, Taraba State has not accessed the proposed ₦350 billion bond from the capital market.
“The process remains at advisory and regulatory stages unlike commercial loans, bond issuance undergoes rigorous approvals, market consultations, and mandatory public disclosure, including six-week national newspaper adverts, making secrecy impossible.
According to him, the purpose of the proposed bond is to, liquidate existing high-interest commercial bank loans and finance long-term capital and infrastructure development.
“Therefore, it is incorrect to add the bond amount to the debt profile, as its effect would be to reduce, not increase, the state’s debt burden.
“The ex-lawmaker falsely referenced ₦206.78 billion in loans approved in 2023. approval does not equal disbursement.
“The approved funds had clear allocations such as, Education — ₦50bn, Agriculture — ₦30bn, Health — ₦30bn, Security — ₦30bn, Infrastructure — ₦40bn and Judiciary, House of Assembly, Microfinance — ₦5bn each. Others include Women Affairs, Digital Economy, Waste Management — ₦2bn each, Gratuities & Pension Enrolment — ₦5bn, and Other sectors — ₦5.476bn.
According to him, each facility has a specific repayment source to include, Zenith Bank: FAAC deductions, UBA: JAAC deductions, Fidelity Bank, VAT deductions and Keystone Bank: IGR deductions.
“Many of these loans have already been fully repaid or will end by December 2025. So, which ₦206.78bn is the former lawmaker referring to?
“On debt reduction acknowledged by Danji SS, even in his own letter, Danji SS admitted that Taraba’s external debt dropped from ₦105.98bn in 2022 to ₦86.96bn under Governor Kefas. This directly contradicts the fictitious ₦1.2 trillion claim.
“Governor Kefas has strengthened the revenue base through, digitalization of revenue systems (2 IT firms onboard), blocking leakages and waste, adoption of treasury single account (TSA) and engagement of seasoned IRS professionals.
He pointed out that the reforms will soon reflect in a major boost to the state’s finances.
“Budget Figures Are Not Actual Spending. The former lawmaker misrepresented 2025 budget projections as current expenditure. Budget figures are estimates until implementation is completed — using them as “actuals” is deceptive.
“Though FAAC allocations have increased nationally, inflation has reduced purchasing power, Cost of 1km of road: ₦300m–₦400m (3 years ago, ₦800m–₦1bn today
According to him, despite the constraints, the administration has delivered to include, ₦35,000 & ₦70,000 minimum wage implementation, Improved state security, Free education and WAEC/NECO fees, Ongoing distribution of learning materials, 80% of primary healthcare centres under renovation and General hospital upgrades.
“ECOWAS Project Financing (Not Public Debt). The $268.6 million ECOWAS Bank financing supports, 10,000-hectare rice farm, State-owned rice mill, Agro-processing industrial park and 50-megawatt solar power plant.
“This is project financing, not a traditional loan, Repayment sourced directly from project revenue, Detailed viability + risk assessments completed and First-of-its-kind sub-national approval in West Africa.
“Contractors will be selected via transparent competitive bidding with public announcements.
“Even using Danji SS’s own figures, Remove the unaccessed ₦350bn bond, Remove the project-financed $268.6m ECOWAS facility, Remove amounts already repaid from the approved 2023 bank loans. There is no basis for the claim of ₦1.2 trillion in debt.The DMO-verified figure of ₦84 billion remains the only factual, credible, and publicly certified debt position of Taraba State – he said.
