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Governor Sheriff Oborevwori of Delta State has approved the release of ₦8.4 billion to the Delta State Oil Producing Areas Development Commission (DESOPADEC) to offset accumulated contract debts dating from 2010 to 2023.

The intervention, according to the state government, is designed to rebuild contractor confidence, accelerate grassroots development, and boost economic activity across oil-producing communities in Delta State.

Briefing journalists at Government House, Asaba, Commissioner for Works (Rural Roads) and Public Communication, Mr. Charles Aniagwu, said the funds would be disbursed to contractors who successfully executed verified projects for the Commission but remained unpaid for years.

He disclosed that contractors owed ₦20 million and below will be paid in full, while those owed more than ₦20 million will receive 50 percent as the first installment.

Aniagwu said the decision underlines Governor Oborevwori’s determination to tackle inherited financial liabilities head-on, in line with the administration’s MORE Agenda of Meaningful Development, Opportunities for All, Realistic Reforms, and Enhanced Peace and Security.

“You will recall that not long ago, His Excellency approved ₦10 billion for the State Pension Bureau to clear a substantial part of outstanding pension arrears,” Aniagwu noted. “Despite these challenges predating his administration, he has continued to address them with courage and compassion.”

Managing Director of DESOPADEC, Chief Festus Ochonogor, commended the Governor for the intervention, describing it as a major step toward restoring trust and sustaining project delivery in oil-producing communities.

He explained that the current DESOPADEC leadership has maintained steady payments for projects awarded under its tenure, adding that the newly approved funds are specifically targeted at settling inherited contractual obligations.

According to Ochonogor, the debts relate to projects ranging from road construction and school rehabilitation to water supply schemes, jetties, and other community-based infrastructure initiatives. He added that the Governor had directed a comprehensive audit to verify claims before approving payments, ensuring transparency and accountability.

The move has sparked optimism across oil-producing communities, many of which have long awaited completion of vital infrastructure development projects.