By By Zik Gbemre
I read the statement by Charles Aniagwu on “Governor Sheriff Oborevwori Approves Release of N8.4 Billion to Delta State Oil Producing Areas Development Commission (DESOPADEC) to Settle Inherited Contract Liabilities.”
Going through the reactions and public commentaries that followed, it is difficult not to reflect on the state of governance and accountability in Delta State.
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Frankly, this is not the kind of DESOPADEC news that stakeholders expected the governor to announce. Beyond the self-congratulatory tone of the message, the reported approval for the release of funds should not, in itself, be celebrated as an extraordinary achievement.
The establishment law governing DESOPADEC mandates the release of all statutory accruals to the Commission. It is therefore an obligation, not a favour, for the governor to ensure such funds are remitted as and when due. Celebrating this statutory responsibility as a major accomplishment seems misplaced.
The 13% derivation fund accrued to oil-producing states is well defined, and by law, 50% of that amount should be allocated to DESOPADEC. This allocation exists to support communities directly impacted by oil exploration and its attendant environmental challenges.
It was, therefore, unnecessary to describe the released funds as “inherited” liabilities. While Governor Oborevwori was not the state’s chief executive during the period when many of the debts were incurred, he did serve as Speaker of the House of Assembly at the time, and the legislature had oversight responsibilities over such financial matters.
For the record, stakeholders are less concerned about the announcement of an N8.4 billion debt payment and more interested in transparency regarding the total amount owed to DESOPADEC, how much has been released so far, and how the funds are being applied.
According to the Managing Director of DESOPADEC, Chief Festus Ochonogor, the debts cover a wide range of projects, including road construction, school rehabilitation, water schemes, jetties, and other community development initiatives.
It is important that these projects are properly audited and evaluated to ensure value for money and that future liabilities are prevented. Public accountability and transparency remain critical for DESOPADEC to fulfil its statutory mandate effectively.
Furthermore, the statement announcing the N8.4 billion payment did not specify what proportion of the total debt this amount represents. Reports also indicate that contractors owed N20 million or less will be paid in full, while those owed above that threshold will receive 50% as the first instalment. This suggests that more funds may still be required to clear outstanding obligations.
What stakeholders expect from Governor Oborevwori is clarity: How much has accrued to DESOPADEC under his administration? How much has been released to date? What is the outstanding balance still owed to the Commission?
Transparency in these matters will promote trust and ensure that DESOPADEC’s mandate is carried out without financial hindrance or political interference.
Ultimately, Delta State needs a DESOPADEC that operates with fiscal discipline, transparency, and accountability. The oil-producing communities deserve no less. As Olorogun Stephen Dieseruvwe aptly noted last year:
“Without oil exploration and exploitation from host communities, Delta State would not be one of the beneficiaries of the 13% Derivation Fund and would depend solely on statutory FAAC allocations. It is unjust and inhuman to deprive oil-producing communities of their rightful entitlement.”
Zik Gbemre
6 November 2025
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