Oborevwori approves ₦8.4 Billion for DESOPADEC to settle decades-old contract debts

Asaba, Delta – In a move aimed at restoring confidence among contractors and revitalizing grassroots development in the state's oil-producing communities, Delta State Governor, Rt. Hon. Sheriff Oborevwori, has approved the release of ₦8.4 billion to the Delta State Oil Producing Areas Development Commission (DESOPADEC).

The funds are earmarked specifically for clearing long-overdue contract liabilities accumulated between 2010 and 2023.

The announcement, made public on Tuesday during a briefing at Government House in Asaba, underscores the administration's commitment to addressing inherited financial burdens head-on.

According to Mr. Williams Ochonogor, a key official from DESOPADEC, the disbursal will cover payments for a wide array of executed projects, including road construction, school rehabilitations, water supply schemes, jetties, and various community development initiatives.

These debts, spanning over a decade, have lingered from previous administrations, creating strains on local economies and deterring new investments in the oil-rich Niger Delta region.

"This intervention is a deliberate effort to confront these inherited obligations rather than sweep them under the carpet," Ochonogor stated, emphasizing that the Oborevwori-led government has maintained a track record of prompt payments for contracts awarded since taking office in May 2023.

The Commissioner for Works (Rural Roads) and Public Communications, Mr. Charles Aniagwu, who disclosed the approval following a meeting between the governor and DESOPADEC management, highlighted its alignment with the state's MORE Agenda.

The decision comes amid ongoing challenges in Nigeria's oil-producing states, where delayed payments to contractors have fueled protests and economic stagnation. Earlier this year, in January 2025, the Ijaw People’s Development Initiative (IPDI) had publicly urged Governor Oborevwori to intervene in a brewing crisis between DESOPADEC and its indigenous contractors' forum over similar unpaid dues, citing mounting hardships including bank loan defaults.

While that appeal predates this approval, stakeholders view it as a responsive step that could prevent escalation.

Local contractors and community leaders have welcomed the news, with many expressing optimism that it will stimulate economic activity and encourage fresh bids for infrastructure projects in Delta's 24 oil-producing local government areas.

"This is more than money—it's a signal that Delta is open for serious business," one anonymous contractor involved in rural road projects told DAILY SOUTH NIGERIA

Governor Oborevwori, who assumed office in 2023 after serving as Speaker of the Delta State House of Assembly, has prioritized fiscal responsibility and project completion since his inauguration.

This latest approval adds to a series of interventions, including recent releases for health infrastructure at Delta State University of Science and Technology (DSUST) and road inaugurations across the state.

As the funds begin to flow, DESOPADEC officials have pledged transparent disbursement processes to ensure every kobo reaches deserving beneficiaries.

Analysts predict this could pave the way for accelerated development in the oil belt, potentially boosting oil production and community welfare in the coming months.