Oborevwori Refutes Borrowing Claims, Confirms ₦40bn ALGON Loan for Pension Liabilities Settlement

The Delta State government has clarified that the N40 billion allegedly borrowed by his administration being circulated on social media was indeed a guaranteed loan by the government for the Association of Local Governments of Nigeria, ALGON, for the purpose of offsetting unpaid pension liabilities of its retired personnel.

The government reiterated that the state’s current debt portfolio of ₦465 billion was inherited from previous administrations, stressing that “the Sheriff Oborevwori administration has not borrowed any dime till now”.

The government was reacting to media reports to the effect that Governor Oborevwori had, soon after assuming office, borrowed the sum of ₦40 billion.

 A statement on Tuesday by the state commissioner of information and orientation, Dr. Ifeanyi Osuoza, entitled “GOVERNOR SHERIFF OBOREVWORI HAS NOT BORROWED A DIME”, said the guaranteed loan facility, repayable over a five-year period, is to be repaid through direct debits to the local government councils. 

Dr. Osuoza appealed to the media to always cross-check their facts before rushing to publish in line with the ethics of the profession.

The statement read: “The Delta State Government notes with serious concern some reports in some online media platforms alleging that Governor Sheriff Oborevwori borrowed the sum of ₦40billion soon after assuming office.

“The reports are not only misleading, but also capable of creating misunderstanding and confusion in the state. For the avoidance of doubt, I wish to state categorically that the Delta State Government DID NOT Borrow ₦40 billion. And the Sheriff Oborevwori administration has not borrowed any dime till now. The records are there for anybody who cares for the truth to verify.

“What the Oborevwori administration did was to graciously guarantee a ₦40b loan facility for ALGON, to enable it to offset the unpaid pension liabilities of retired Local Government personnel. Repayable over a five-year period, the loan is to be repaid through direct debits to the Local Government Councils. 

“For the umpteenth time, let me also state without equivocation that the so-called ₦465 billion debt amount is actually the existing debt profile accumulated by previous administrations in the state. Governor Oborevwori, as many would testify, is a prudent manager of resources, and has done the right thing by keeping to the terms of repayment as specified in the loan agreements. The Governor deserves commendation, not condemnation, for being a man of honour and integrity.

“Debt servicing/repayment improves the credibility of any administration in the global financial community as a serious minded and progressive administration, which will enjoy the respect and support of financial institutions. It is only a well run economy that can embark on debt servicing and still maintain its developmental vision and focus for the welfare and well being of its citizens, as the Oborevwori administration has continued to do.

“Meanwhile, I appeal to the media, as strategic partners of development, to always cross-check their facts, as the ethics of the profession demands, before rushing to publish. I wish to reiterate that Governor Oborevwori maintains an open-door policy and is committed to transparency and accountability in the administration of the state”.