27/06/2026
PRESS RELEASE
For Immediate Release
June 26, 2026
Danji SS Media Team Raises Legal and Fiscal Concerns Over Gov. Kefas’ $268.63 Million EBID Loan, Demands Full Disclosure and Compliance with the Law
The Danji SS Media Team has expressed grave concern over Governor Agbu Kefas’ newly announced $268.63 million loan facility from the ECOWAS Bank for Investment and Development (EBID), signed in Lomé, Togo.
At the prevailing exchange rate of ₦1,379.75 to $1, the facility amounts to approximately ₦370.5 billion, making it the largest single borrowing in Taraba State’s history. Such a long-term financial obligation demands strict compliance with the law, complete transparency, and public accountability because its repayment will extend far beyond the tenure of the current administration.
Our concern is not with borrowing itself. Governments may borrow for productive investments where there is demonstrable value for money. Our concern is whether this borrowing complies with Nigeria’s fiscal laws, follows due process, and genuinely serves the interests of the people of Taraba State.
1. The Law Governing External Borrowing
External borrowing by states is governed by clear statutory safeguards designed to protect public finances.
Section 21(1) of the Debt Management Office (Establishment) Act, 2003 provides that:
“No external loan shall be approved or obtained by the Minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution.”
Furthermore, Section 47(3) of the Fiscal Responsibility Act, 2007 provides that:
“In the case of foreign currency borrowing, Federal Government guarantee shall be a requirement and no State, Local Government or Federal Agency shall, on its own, borrow externally.”
Also Section 21(2) states that "The Federal, State or any of their agencies shall not obtain external loan except with a guarantee issued by the Minister".
These provisions underscore that external borrowing is not merel