RE: ₦8.4 Billion Debt For DESOPADEC Contract Payments (PRESS STATEMENT)

On November 6, 2025, the Delta State Government, under the leadership of His Excellency, the Governor of Delta State, Rt. Hon. Sheriff Oborevwori, authorized the payment of ₦8.4 billion in outstanding project debts owed to DESOPADEC contractors, which should also raise significant concerns.

The funds, purportedly inherited from the previous administration, were owed to contractors by the Delta State Oil Producing Areas Development Commission (DESOPADEC) for obligations related to road construction, school rehabilitation, water supply schemes, jetties, and other community development initiatives.

The Delta State Oil Producing Area Development Commission (DESOPADEC), established by an enabling Act in Delta State, is mandated to receive 50% of the 13% Oil Derivation Fund allocated to the Delta State Government.

The allocated funds are intended for the rehabilitation and development of oil-producing areas within the state, as well as implementing various developmental projects as determined by the commission. However, recent concerns have been raised regarding the potential misappropriation of public funds by board members. 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.

What is the purpose of the received funds, partly from the 13% derivation fund, if not to execute and implement development projects within Delta State’s oil-producing area? Or should I conclude that the previous government, led by Sen. Dr. Ifeanyi A. 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?

Notably, this has been the rationale behind the demands of indigenous people across the state, from oil-producing communities, for the direct payment of the 13% oil derivation funds to local communities, as 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 one of the primary objectives of the Delta State Oil Producing Areas Development Commission (DESOPADEC), akin to the erstwhile operations of the NDDC, the commission aimed to provide skill acquisition programmes and self-employment opportunities in oil host communities in Delta State for indigenes, but it has gradually deviated from its purpose. It would have been instrumental in providing skills for youths in these areas, thereby mitigating crimes and insecurities in the state, as well as curbing activities such as drug abuse and prostitution among the girl child, which are currently on the rise, as many youths would be productively occupied and gainfully self-employed if they were engaged by the few private companies or industries in the area.

Notably, such substantial revenues can be utilized to establish meaningful projects. It is unfortunate that, despite generating significant revenue, the government cannot claim ownership of any industry or even revitalize state-owned abandoned factories. A considerable number of indigenous Deltans have been deprived of opportunities to thrive due to the absence of these initiatives. Consequently, it is evident that any nation committed to self-reliance and sustainable development must prioritize industrialization. Delta State has a favourable natural environment, conducive to year-round productivity, and one of its distinctive features is its oil and gas industry.

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Regrettably, we have run governments for nearly three decades but have devoted insufficient attention to the fundamental principles of governance and their effects on the populace. The Delta State Government is capable of establishing pivotal major industries in various fields of productivity at strategic locations throughout the state. 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.

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. However, I am using this medium to bring to the attention of the Delta State Governor, Rt Hon Sheriff Oborevwori, the need to critically examine the issues and needs confronting the people, ensuring that they benefit from the oil production in the State, particularly at a time when the majority of young people require gainful employment.

Comr. (Amb) Derrick Oritsematosan Agberen
National Coordinator, Initiative For Social Rights Concerns And Advancement(ISRCA)
AKA “No Justice, No Peace.”