₦15 Billion DESOPADEC Debt Scandal: Gov. Oborevwori Accused of Diverting Funds, Leaving Contractors Stranded

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Delta State is embroiled in controversy as Governor Sheriff Oborevwori faces allegations of diverting funds meant for the Delta State Oil Producing Areas Development Commission (DESOPADEC), leaving contractors in heavy debt and critical projects abandoned.

According to a detailed report by TrackNews.ng, the debt profile of DESOPADEC has ballooned to ₦15 billion, covering contracts awarded between 2022 and 2025. Despite DESOPADEC reportedly receiving ₦114 billion from FAAC allocations between January and June 2025, contractors allege they get only about ₦1 billion monthly, which they insist is far from sufficient.

Contractors claim that politically connected firms are prioritized for payments, while others who have completed projects remain stranded. Many contractors revealed they had to finance projects themselves, taking out loans at 10–15% monthly interest rates, a situation that has forced some into bankruptcy, ill health, or fleeing from creditors.

Banks that once supported DESOPADEC projects have now pulled out due to rising debts. Critics argue that unlike past administrations, where mobilization fees and direct bank payments ensured smoother operations, the current system under Governor Oborevwori has crippled contractors.

One contractor, Mr. Kevwe Ogbodo, accused the governor of “kneeling on the necks of contractors so they can’t breathe” and predicted that the EFCC would eventually investigate the alleged diversion of funds.

Frustrated by years of neglect, a coalition of contractors has issued a one-month pre-action notice to DESOPADEC, demanding transparency and a full breakdown of contract awards and payments from 2023 to date.

With projects stalled and livelihoods at risk, the DESOPADEC debt scandal is fast shaping up to be one of Delta State’s biggest financial controversies in recent times.