Olayinka Gabriel, a chartered accountant and financial analyst in Taraba state, has faulted the recent claim by Hon. Danjuma Shidi, former member House of Representatives from Taraba state, that the state’s debt has risen to N1.2 trillion, stating that the figure presented by Shidi is misleading.
Hon. Shidi who represents Wukàri/Ibi federal constituency at 8th national assembly in his open letter to the state’s house of assembly, youth leaders, senior citizens, political parties and general public last week accused Agbu Kefas, the Taraba state governor of obtaining debt to the tune of over N350 billion and also receiving over N437 billion from federal allocation in 2 years with no project to show in the state.
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Gabriel, who spoke to a journalist in Jalingo, Taraba state capital, on Monday in his office, said the allegations by Shiddi, claiming that Taraba State’s debt has risen to ₦1.2 trillion, are misleading, inaccurate, and should be disregarded in their entirety. Revealing that the claims contained in the open letter to the Taraba State House of Assembly lack a factual basis and appear politically motivated.
“According to the Debt Management Office (DMO), Taraba State’s verified debt profile currently stands at ₦84 billion, significantly lower than those of Adamawa, Gombe, and Bauchi States within the Northeast region. ₦350 billion bond not yet accessed
“Contrary to Shidi’s assertion, Taraba State has not accessed the proposed ₦350 billion bond from the capital market. The process remains at the advisory and regulatory stages.
Gabriel, in his analysis, said that, unlike commercial loans, bond issuance undergoes rigorous approvals, market consultations, and mandatory public disclosure, including six-week national newspaper adverts, making secrecy impossible.
“It is incorrect to add the bond amount to the debt profile of the state since it is yet to be assessed; 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, its indicates that Education has ₦50bn, Agriculture has ₦30bn Health has ₦30bn Security has ₦30bn Infrastructure has ₦40bn, Judiciary, House of Assembly, Microfinance has ₦5bn each, Women Affairs, Digital Economy, Waste Management has ₦2bn each, Gratuities & Pension Enrolment and ₦5bn while other sectors has ₦5.476bn.
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Gabriel therefore emphasises that each facility has a specific repayment source which is 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. Gabriel stated. He revealed.
