Disagreement Trails Release Of N8.4bn To Clear Contract Debts In Delta

The release of ₦8.4 billion to the Delta State Oil Producing Areas Development Commission (DESOPADEC) by the state government for the settlement of long-standing contract liabilities dating from 2010 to 2023 is generating issues.

The intervention is aimed at restoring contractor confidence, revitalizing grassroots development, and stimulating economic activity across the state’s oil-producing communities.

The Commissioner for Works (Rural Roads) and Public Communication, Mr. Charles Aniagwu, confirmed the state governor, Hon. Sheriff Oborevwori, approved it after a meeting between the governor and the management of DESOPADEC.

Aniagwu explained that the funds would be used to pay contractors who executed verified projects for the commission but had remained unpaid for years.

He noted that contractors owed ₦20 million and below would receive 100 per cent payment, while those owed above ₦20 million would receive 50 per cent as first installment.

“This is despite the fact that many of these challenges predated his administration, he has continued to address them with courage and compassion,” Aniagwu said.

But Comr. Derrick Agberen, national coordinator, Initiative For Social Rights Concerns And Advancement(ISRCA)

in a press statement lamented  that there is growing concern among indigenous communities and the general public regarding these alleged excesses, particularly given that the projects being funded are not visibly ongoing, and the public is unable to verify the benefits of previously established projects during the previous administration.

According to him, it is lamentable that, as an oil-producing state, Delta State has failed to develop its areas with the trillions of naira received as allocations from FAAC annually, considering the development that has occurred in the state, which is not commensurate with the allocations received by the governments.

“Should I conclude that the previous government, led by Sen. Dr. Ifeanyi Okowa, failed to judiciously utilize the 13% oil derivation funds for their intended purposes, considering the substantial amount Delta state receives in a calendar year and the recent ₦8.4 billion debt approved for DESOPADEC contractors?

“There have been no significant contributions since inception, apart from a few exceptions, while larger funds remain unaccounted for due to purported contracts that only appear to exist in media reports.

“As a rich oil-producing state, it is imperative that we transition beyond mere infrastructural development, focusing on roads, bridges, and poorly planned empowerment schemes that cater exclusively to political party loyalists, for an administration or even two tenures of government, without industrialization,” he said.

He however advised Governor Oborevwori on the need to critically examine the issues and needs confronting the people, ensure that they benefit from the oil production in the state, particularly at a time when the majority of young people require gainful employment.