In a significant move to address longstanding financial obligations and boost development in Delta State's oil-producing regions, Governor Rt. Hon. Sheriff Oborevwori has authorized the release of ₦8.4 billion to the Delta State Oil Producing Areas Development Commission (DESOPADEC). This funding is specifically earmarked for clearing contract liabilities that have accumulated from 2010 to 2023, spanning multiple previous administrations. The decision underscores the governor's commitment to tackling inherited challenges head-on, fostering renewed trust among contractors, and accelerating grassroots economic growth in communities long impacted by oil exploration activities.
The announcement was made public by the Commissioner for Works (Rural Roads) and Public Communication, Mr. Charles Aniagwu, during a press briefing at Government House in Asaba. The briefing followed a high-level meeting between Governor Oborevwori and the management team of DESOPADEC. Aniagwu emphasized that the funds would exclusively settle debts owed to contractors who had completed verified projects under the Commission's mandate but had been left unpaid for extended periods, in some cases for over a decade. This backlog had not only strained relationships with local businesses but also stalled critical infrastructure projects essential for the welfare of oil-bearing communities.
To ensure an orderly and equitable disbursement process, the payment structure has been clearly defined. Contractors with outstanding claims of ₦20 million or less will receive full 100 percent settlement immediately upon verification. For those with larger debts exceeding ₦20 million, an initial installment of 50 percent will be paid, with the balance to follow in subsequent phases pending further audits and fund availability. This tiered approach aims to provide swift relief to smaller contractors, many of whom are local enterprises, while managing the overall fiscal impact on the state's resources.
Aniagwu highlighted that this intervention aligns seamlessly with the core pillars of Governor Oborevwori's MORE Agenda—a comprehensive governance framework focused on Meaningful Development, Opportunities for All, Realistic Reforms, and Enhanced Peace and Security. By confronting these inherited financial burdens rather than deferring them, the administration is demonstrating fiscal responsibility and a people-centered approach. "You will recall that not long ago, His Excellency directed the release of ₦10 billion to the State Pension Bureau to clear a substantial portion of outstanding pension liabilities," Aniagwu remarked. He further pointed out the governor's prior actions, including the settlement of promotion arrears for civil servants, as evidence of a consistent pattern of addressing pre-existing issues with determination and empathy, even though they originated before the current term began in 2023.
The approval comes at a time when Delta State, as one of Nigeria's foremost oil-producing regions, continues to grapple with the socio-economic fallout from resource extraction. Oil-producing areas in the state, including local government areas such as Warri North, Warri South, Warri South-West, Burutu, Bomadi, and others, have historically borne the brunt of environmental degradation, inadequate infrastructure, and delayed development projects. DESOPADEC, established under the Delta State Oil Producing Areas Development Commission Law of 2006, is tasked with using a portion of oil-derived revenues to mitigate these issues through targeted interventions. However, accumulated debts from past projects had eroded contractor confidence, leading to abandoned sites, unfinished roads, dilapidated schools, and non-functional water schemes—problems that have exacerbated poverty and unrest in these communities.
Echoing the commissioner's sentiments, the Managing Director of DESOPADEC, Chief Festus Ochonogor, expressed profound gratitude to Governor Oborevwori for this timely financial bailout. Ochonogor described the ₦8.4 billion release as a pivotal milestone in rebuilding trust and ensuring the seamless continuation of development initiatives. He clarified that the current DESOPADEC management, since assuming office under the Oborevwori administration, has maintained a policy of prompt payments for all projects executed during its tenure. The newly approved funds, therefore, are dedicated solely to resolving contractual obligations inherited from prior years, preventing any commingling with ongoing operations.
Ochonogor provided detailed insights into the scope of the debts, which encompass a wide array of community-focused projects. These include the construction and rehabilitation of rural roads to improve accessibility and trade; upgrades to educational facilities such as primary and secondary schools to enhance learning environments; installation and maintenance of water supply systems to address potable water shortages; building of jetties for riverine transportation in the Niger Delta's waterway-dependent areas; and various other grassroots initiatives like health centers, electrification schemes, and skills acquisition programs. Many of these projects were initiated between 2010 and 2023 but halted due to funding shortfalls, leaving communities in limbo and contractors out of pocket.
A key prerequisite for the fund release was a rigorous audit process mandated by the governor. DESOPADEC was instructed to conduct an exhaustive verification exercise to authenticate all claims, eliminate fraudulent entries, and prioritize genuine obligations. This transparency measure not only safeguards public funds but also sets a precedent for accountable governance in the management of derivation revenues. Ochonogor assured stakeholders that the audit has been thorough, involving cross-verification with project documents, site inspections, and contractor testimonies, ensuring that only legitimate debts are honored.
The news has been met with widespread acclaim in the oil-producing heartlands of Delta State. Community leaders, traditional rulers, and youth groups in areas like Ijaw, Itsekiri, and Urhobo-dominated regions have hailed the governor's decision as a breath of fresh air. For years, residents have voiced frustrations over stalled projects that promised better living standards but delivered little due to payment delays. With contractors now poised to receive settlements, there is optimism that work will resume on dormant sites, creating jobs, stimulating local economies, and restoring faith in government institutions. Small-scale vendors, laborers, and suppliers who depend on these contracts for livelihoods are particularly hopeful, as the ripple effects could alleviate unemployment and poverty in these vulnerable zones.
This development also carries broader implications for Delta State's economic landscape. By clearing these liabilities, the administration is freeing up DESOPADEC to focus on new mandates without the overhang of past debts. It signals to potential investors and contractors that the state is a reliable partner, potentially attracting more private sector participation in infrastructure development. Furthermore, it reinforces Governor Oborevwori's reputation as a leader unafraid to tackle tough fiscal legacies, even amid national economic pressures such as fluctuating oil prices, inflation, and competing budgetary demands.
In the context of Nigeria's federal structure, where oil-producing states receive 13 percent derivation funds from the federation account, DESOPADEC's role remains crucial. The Commission's ability to deliver on its statutory obligations directly impacts social stability in the Niger Delta, a region prone to militancy and agitations when development promises go unfulfilled. Governor Oborevwori's proactive stance could serve as a model for other states facing similar inherited burdens, promoting a culture of continuity and accountability in public finance management.
As payments commence in the coming weeks, monitoring mechanisms will be vital to track progress and ensure funds reach intended beneficiaries without diversions. Community oversight committees and civil society organizations have been encouraged to participate in verification processes, further embedding transparency. Ultimately, this ₦8.4 billion intervention is more than a debt clearance exercise; it is a strategic investment in human capital, infrastructure resilience, and sustainable peace in Delta State's oil communities. With the MORE Agenda as its guiding light, the Oborevwori administration continues to prioritize inclusive growth, proving that addressing yesterday's problems is key to building tomorrow's prosperity.
