After nearly three years of financial stagnation and project delays, the Delta State Oil Producing Areas Development Commission (DESOPADEC) has received a major boost as Governor Rt. Hon. Sheriff Oborevwori approved the release of ₦8.4 billion to offset inherited contract debts dating back to 2010.
The long-awaited intervention marks a decisive move to revive confidence among contractors, unlock stalled community projects, and breathe new life into grassroots development across Delta’s oil-producing areas.
Commissioner for Works (Rural Roads) and Public Communication, Mr Charles Aniagwu, who disclosed this to journalists at Government House, Asaba, stated that the funds will settle verified contract liabilities owed to contractors for completed projects spanning 13 years.
According to Aniagwu, contractors owed ₦20 million and below will receive full payment, while those owed above ₦20 million will get 50 percent in the first tranche.
“This approval reflects the Governor’s commitment to addressing inherited financial burdens rather than ignoring them,” Aniagwu stated. “It aligns with the MORE Agenda — Meaningful Development, Opportunities for All, Realistic Reforms, and Enhanced Peace and Security.”
He recalled that the Oborevwori administration had earlier approved ₦10 billion for the State Pension Bureau to clear outstanding pension arrears and also intervened in the payment of promotion backlogs.
“Despite these challenges predating his administration, the Governor continues to show courage and compassion by confronting them head-on,” Aniagwu added.
Speaking further, the Managing Director of DESOPADEC, Chief Festus Ochonogor, described the Governor’s gesture as a “lifeline” for the Commission and the communities it serves.
“This intervention restores faith in government and ensures continuity in project delivery across our mandate areas,” Ochonogor said. “Since this management team assumed office, we have kept pace with current obligations, but the inherited debts have stalled progress. The Governor’s approval is a major relief.”
He explained that the outstanding debts covered multiple community-based projects, including roads, schools, jetties, water schemes, and healthcare infrastructure — many of which had been suspended due to unpaid balances.
Ochonogor further disclosed that before the release was approved, the Governor ordered a thorough audit and verification process to ensure transparency and accountability in the settlement.
“This payment will stimulate local economies, re-energise contractors, and deliver long-delayed projects to our people,” he assured.
The development has been widely applauded across oil-producing communities, where residents view it as a long-overdue turnaround for DESOPADEC, following years of neglect and underfunding.
With the ₦8.4 billion injection, observers say the Commission now has an opportunity to restore its credibility, rekindle grassroots development, and reaffirm its central role in improving living standards in Delta’s oil-bearing regions.
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