Taraba Approaches ECOWAS Bank, ADB, Afreximbank, For N2 Trillion Loan

By Ayodele Oni

In an attempt to make the state less dependent on allocation from federation account, Taraba State Government has moved to source for $1.5 billion (N2 trillion) from foreign banks to drive economic growth.

The State Commissioner for Energy and Economic Development, Naomi Tanko Agbu, who disclosed this, stated that the state  Internal Revenue Service (TIRS) is equally targeting an Internally Generated Revenue (IGR) of N110 billion by 2029.

Speaking during an interactive session with stakeholders in Abuja, organised by the Taraba State government with critical stakeholders, Agbu pointed out that the state is facing challenges of insecurity and economy.

“One of our key steps is to engage our key partners to build critical infrastructures for opportunities and enhance economic activities. As we prepare for the 2025 budget, I want to share some insights with you. We are prioritising education, welfare and infrastructure. Every kobo spent will be accounted for.

“The challenges we face are much and so are the opportunities. Taraba is not a poor state. What we need today is collective efforts. Development requires that all hands must be on deck.”

The Commissioner said the State government has already commenced discussions with the ECOWAS Bank for Investment and Development; African Export-Import Bank (Afreximbank) and the African Development Bank to raise the funds.

Agbu explained that the funds would be channeled into key sectors of the economy, including renewable energy, agriculture, and solid minerals.

According to her, investing in power was critical to the economic survival of Taraba State.

“For the ECOWAS bank, we’ve gone to an advanced stage, and right now we’re proceeding to board approval and presentation for our approval of some of the projects that have already been detailed.

“For Afreximbank, We’ve commenced document exchange with them and for the African Development Bank, we’re going to continue with the engagement. And we will be meeting with the Country Managing Director of African Development Bank to further the progress of Taraba state.

“Across all these financial institutions, what is the target? And I had to pause, because when we begin to talk about numbers, I’ve told you about 10 megawatts, I’ve told you about 35 megawatts, and I’m telling you, it will cost me $1.5 million to get one watt.

“So across those financial institutions, our target is to raise not less than $1.5 billion which is over N2 trillion to inject into the economy of Taraba state.

“You might say the number is high, but if we don’t do it now, when are we going to do it? I, as a youth, a number of things breaks my heart that coming to my own home state, five Local Governments are not connected to the national grid.

“If we don’t do it now, we won’t be able to secure the future for our children, and I know that is what His Excellency, our governor understands keenly.”

Agbu further revealed that the State has successfully passed its own electricity law, known as the Taraba State Electricity Law 2024, which gives it power to establish its own Electricity Regulatory Commission, generation company, distribution company, rural electrification board, and electricity infrastructure provision fund.

She added that this is a significant development, given that 80 per cent of Nigeria’s power is currently generated in the South, with only 20 per cent coming from the North.

The Commissioner, however said that the current allocation from the national grid is not commensurate with the needs of Taraba State.