By Peter Onwuma
WARRI/Nigeria: Three months after the Delta State Government released ₦8.4 billion to the Delta State Oil Producing Areas Development Commission (DESOPADEC) for the settlement of outstanding obligations to contractors, the commission is still grappling with accumulated debts estimated at about ₦15 billion, raising concerns among contractors executing projects across oil-producing communities.
Investigations by our correspondent indicate growing tension among contractors, some of whom are now threatening to occupy the premises of the commission and disrupt activities if their outstanding payments are not addressed.
Checks revealed that prior to the intervention by Governor Sheriff Oborevwori, DESOPADEC’s outstanding liabilities stood at about ₦15 billion. Although ₦8.4 billion was reportedly released to ease the burden, contractors say the payment only partially addressed the backlog, leaving an estimated balance of about ₦6.6 billion, with the figure now approaching ₦7 billion as more projects reach completion.
Contractors further alleged that the funds released were insufficient to cover the full scope of outstanding obligations, with payments spread unevenly across projects, leaving many contractors unpaid or only partially settled. They also lamented that since the last disbursement, no further payments have been made in November, December and January, despite continued statutory allocations accruing to the state.
Some of the aggrieved contractors, many of whom say they have been owed for over two years, expressed frustration over the situation. Barnabas Igbe, who spoke during an interview, questioned the continued delay in settling contractors’ claims. “The government often says there is money in the state. Why then should contractors, many of whom borrowed funds to execute these projects, be left unpaid? A labourer deserves his wages,” he said.
Another contractor, Chief Evawere Onoriode, described the situation as deeply troubling, arguing that DESOPADEC cannot function effectively without regular funding. He noted that the commission’s statutory entitlement from the 13 per cent derivation fund, which should amount to 50 per cent, has allegedly not been fully released over time, further constraining its operations.
Nwachukwu Odogwu, also a contractor, said delays in payment had persisted across successive administrations, adding that many contractors were not given mobilisation fees and had to rely on bank loans or personal resources to execute projects. He argued that with increased revenue accruing to the state, there was no justification for prolonged non-payment of contractors who had fulfilled their contractual obligations.
As tensions rise, stakeholders are calling on the Delta State Government to urgently intervene to clear the outstanding liabilities, warning that continued delays could stall development projects in oil-producing areas and further strain relations between the government and local contractors.
