Taraba State, located in Nigeria’s North-East geopolitical zone, has made headlines with the unveiling of its ambitious 2025 budget. Tagged the “Budget of Transformation,” this financial plan reflects the administration’s commitment to accelerating development, expanding infrastructure, and improving the living standards of its people. With a total allocation of ₦429.9 billion, the 2025 budget marks a significant 37% increase from the ₦311.4 billion budgeted in 2024.
Governor Agbu Kefas, while presenting the budget to the Taraba State House of Assembly, emphasized that the aim is to put Taraba on the path of sustained growth by investing heavily in capital projects, education, healthcare, and economic diversification. In this blog post, we’ll explore everything you need to know about Taraba State’s 2025 allocation—from revenue sources and expenditure priorities to alignment with long-term development plans.
Overview of the 2025 Budget
The proposed 2025 budget of ₦429.9 billion is structured with a deliberate tilt toward capital expenditure, which constitutes ₦266.12 billion (61.9%), while recurrent expenditure takes up ₦163.78 billion (38.1%).
This capital-heavy approach signals the government's focus on long-term infrastructural development and transformation of key economic sectors such as education, health, agriculture, and road networks. The emphasis is on building a more self-reliant economy through strategic investments, with less dependence on federal allocations.
Revenue Projections: Where Will the Money Come From?
To fund the ₦429.9 billion budget, Taraba State is expecting revenue from the following key sources:
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Statutory Allocation (FAAC): ₦139.93 billion
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Internally Generated Revenue (IGR): ₦50.04 billion
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Aids and Grants: ₦154.26 billion
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Capital Development Fund: ₦79.77 billion
These projections are grounded on national macroeconomic indicators including:
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Oil price benchmark: $75 per barrel
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Exchange rate: ₦1,400 to the US dollar
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Inflation rate: 15.75%
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Projected national GDP growth: 4.6%
This diversified revenue approach, especially the increased expectation from grants and capital funds, showcases the state's intent to attract development partnerships and reduce overdependence on volatile oil-based revenues.
Sectoral Breakdown of the 2025 Budget
A closer look at how the capital expenditure is distributed reveals the administration’s priorities. Here is a breakdown by major sectors:
1. Economic Sector – ₦147.09 Billion (55.3% of Capital Expenditure)
This sector receives the highest allocation and focuses on initiatives that will drive economic productivity and employment creation. Key areas of investment include:
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Agriculture: Mechanized farming, agro-processing, and food security initiatives.
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Infrastructure: Road construction and rehabilitation, public works, water supply, and urban renewal.
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Commerce and Industry: Empowerment of local entrepreneurs, investment promotion, and market development.
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Energy: Investment in renewable energy, rural electrification, and improved power infrastructure.
2. Social Services Sector – ₦72.88 Billion (27.4% of Capital Expenditure)
Social services, particularly education and healthcare, are at the core of the state’s developmental agenda. Under this sector, the state aims to:
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Provide free and compulsory education up to secondary school level.
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Introduce hydraform block technology for building cost-effective and eco-friendly school infrastructure.
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Upgrade healthcare infrastructure, procure medical equipment, and strengthen the health insurance scheme.
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Expand youth and women empowerment programs across the state.
3. Administrative Sector – ₦40.20 Billion (15.1% of Capital Expenditure)
This covers institutional reforms and the running of public offices. Funds are allocated to:
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Improve civil service efficiency through training and capacity building.
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Implement digital governance systems to enhance service delivery.
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Maintain government buildings and logistics for ministries, departments, and agencies.
4. Law and Justice Sector – ₦5.95 Billion (2.2% of Capital Expenditure)
This small but vital sector will focus on:
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Rehabilitation and construction of courts across the state.
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Enhancing the rule of law and justice delivery through legal reforms.
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Supporting the Ministry of Justice and judiciary in its operations.
Recurrent Expenditure Details
Though the capital projects dominate the allocation, the ₦163.78 billion allocated to recurrent expenditure will be used to:
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Pay salaries and pensions of civil servants.
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Maintain operational expenses of government institutions.
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Fund social intervention programs and administrative overheads.
The budget ensures that routine governance operations remain functional while prioritizing capital projects.
Alignment with the Taraba Development Master Plan (2023–2050)
Governor Kefas emphasized that the 2025 budget aligns with the Taraba Development Master Plan 2023–2050, which is a long-term vision to transform the state across multiple fronts:
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Economic Transformation: Through industrialization, agriculture, and tourism.
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Environmental Sustainability: Promotion of green technologies and reforestation.
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Human Capital Development: Education, healthcare, and skill acquisition programs.
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Good Governance: Strengthening institutions, rule of law, and transparency.
This Master Plan provides a roadmap for Taraba's growth over the next 25 years, and the 2025 budget is a critical step in its implementation.
Implementation Strategy and Monitoring
To ensure the effective use of funds, the state government has proposed a robust monitoring and evaluation mechanism. Key aspects include:
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Performance-Based Budgeting: Funds will be linked to measurable outputs and results.
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Periodic Audits and Reports: Financial reports will be submitted regularly to track budget performance.
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Stakeholder Engagement: Civil society, private sector, and donor agencies will be involved in oversight.
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Technology Integration: Use of digital tools to monitor projects and manage resources transparently.
The state is also working on adopting international best practices in public finance management, especially to build donor confidence and attract foreign aid.
Governor Kefas’ Remarks
During the budget presentation, Governor Agbu Kefas reiterated his administration’s commitment to transformative leadership. He stated:
“This budget is a bold move toward transforming Taraba into a state of pride. Our focus is to deliver visible infrastructure, empower our youth, and build a future-ready economy.”
He also called on members of the State Assembly to give the budget swift and thorough consideration, noting that its timely passage is crucial for implementation.
Challenges and Outlook
While the budget is ambitious and well-structured, its success will depend on:
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Timely disbursement of federal allocations.
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Efficient IGR collection mechanisms.
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Transparency in project execution.
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Security and political stability.
Despite these challenges, the outlook remains positive, especially with the administration’s commitment to institutional reforms and private-sector partnerships.
Conclusion
Taraba State’s 2025 budget allocation is a strong step toward inclusive and sustainable development. With a clear emphasis on capital investment, social services, and economic diversification, the “Budget of Transformation” reflects a roadmap for growth. If successfully implemented, this budget will not only improve infrastructure and human capital but also position Taraba as a competitive subnational economy in Nigeria.
The combination of strategic planning, prudent resource management, and stakeholder involvement will be key to unlocking the full potential of this allocation.
