JALINGO — The Taraba State Government has been given a 14-day ultimatum to pay N650 million allegedly owed to Integrated Bayco Agro Services Ltd for the production and supply of 300,000 cocoa seedlings under the Governor Agbu Kefas Agricultural Revolution Initiative.
The demand was contained in a letter issued by a legal firm representing the company, which alleged that the seedlings were produced and supplied for distribution to farmers as part of the state government’s cocoa development programme.
According to the letter, the seedlings were supplied and distributed to farmers during the official launch of the cocoa initiative on August 13, 2025, in Ndaforo, Kurmi Local Government Area of the state.
The company claimed that it financed the production of the seedlings through high-interest financial facilities, adding that the prolonged delay in payment had placed significant financial pressure on its operations.
It therefore demanded the immediate settlement of the alleged outstanding debt, warning that failure to pay within 14 days would compel the company to commence legal proceedings against the state government to recover the money.
However, questions have emerged over the figures contained in the demand.
At an alleged contract rate of N550 per seedling, the supply of 300,000 seedlings would amount to approximately N165 million, significantly below the N650 million being demanded.
The disparity raises questions about whether the N650 million claim includes additional costs, interest, financing charges, variations, or other contractual obligations beyond the initial seedling supply.
As of the time of filing this report, there was no official response from the Taraba State Government clarifying the basis of the N650 million demand or explaining the terms of the contract with Integrated Bayco Agro Services Ltd.
The development is expected to generate further scrutiny over the implementation and financing of the state’s agricultural initiatives, particularly the contractual arrangements surrounding the cocoa revolution programme.
The company’s 14-day ultimatum, if not resolved, could ultimately push the matter before the courts, where the contractual terms, payment obligations and basis of the N650 million claim may be subjected to legal scrutiny.
