From ₦463bn to ₦63bn: How Oborevwori Is Tackling Delta’s Inherited Debt Burden

Delta State Governor, Rt. Hon. Sheriff Oborevwori, has reportedly reduced the state’s inherited legacy debt from approximately ₦463 billion to ₦63 billion, representing a reduction of about ₦400 billion since assuming office.

The development marks a significant step in the administration’s efforts to address accumulated financial obligations inherited from successive governments, while creating fiscal space for infrastructure development, agriculture and other economic priorities.

The Commissioner for Economic Planning, Mr Sonny Ekedayen, disclosed the latest debt position during the state’s 2026 budget stakeholders’ engagement held in Asaba on Friday.

Ekedayen said the administration was targeting the complete liquidation of the outstanding ₦63 billion by the first quarter of 2027, attributing the progress to prudent financial management and responsible utilisation of public resources.

Understanding Delta’s ₦463bn Legacy Debt

Delta State’s inherited financial obligations reflect years of accumulated liabilities arising from government projects, unpaid contractors’ bills, pension and gratuity arrears, commercial loans, government-to-government borrowing and other commitments.

Historical records contained in the state’s Debt Sustainability Analysis and Debt Management Strategy for 2018–2022 provide insight into the scale of these obligations.

The report identified approximately ₦114.63 billion in contractors’ arrears, ₦92.41 billion in government-to-government borrowing, ₦26.69 billion in commercial loans and ₦23.94 billion in pension and gratuity arrears as at 2022.

Other liabilities stood at approximately ₦46.12 billion, while judgement debts were recorded at about ₦469 million.

In November 2022, the immediate past administration’s Commissioner for Finance, Chief Fidelis Tilije, had put the state’s debt profile at ₦272 billion, including ₦84 billion owed to contractors and ₦27 billion in pension arrears.

He also acknowledged that a substantial portion of the state’s financial obligations had been inherited from the preceding administration.

These historical figures illustrate how successive administrations contributed to the financial commitments confronting the state, although they do not constitute a complete breakdown of the ₦463 billion inherited by the Oborevwori administration.

How Oborevwori Is Reducing the Debt Burden

Since assuming office in May 2023, the Oborevwori administration has made servicing inherited financial obligations a major component of its fiscal management strategy.

By August 2024, the government had disclosed that approximately ₦130 billion had been spent servicing inherited debts as of March 2024.

The latest disclosure by Ekedayen indicates that the administration has further reduced the legacy debt burden, bringing the outstanding balance to ₦63 billion.

The reported reduction of approximately ₦400 billion is significant because accumulated government liabilities can constrain available resources for new projects, delay contractors’ payments and limit the capacity of government to respond to competing developmental needs.

Achieving the proposed first-quarter 2027 deadline would therefore mark an important milestone in the state’s efforts to settle outstanding obligations and strengthen its financial position.

Infrastructure and Agriculture Take Priority

Beyond debt reduction, the Oborevwori administration says it is repositioning the state’s expenditure priorities towards infrastructure and productive economic activities.

Ekedayen disclosed that the current expenditure structure allocates approximately 70 per cent to capital projects and 30 per cent to recurrent expenditure.

He said the proposed 2027 budget would sustain the emphasis on capital expenditure, with roads and critical infrastructure receiving priority attention.

The focus on infrastructure is expected to improve transportation networks, open up rural communities, facilitate the movement of agricultural produce and create a more favourable environment for private-sector investment.

Agriculture is also expected to benefit from improved infrastructure and investments aimed at strengthening production, food security and economic diversification.

Stakeholders Seek Citizens’ Participation

Meanwhile, the Asagba of Asaba, Prof. Epiphany Azinge, stressed the importance of citizens’ participation in budget preparation, while commending the government for its reported budget performance.

Civil society organisations at the engagement also welcomed plans by the Delta State House of Assembly to introduce legislation regulating housing issues.

Stakeholders urged residents to protect public infrastructure and maintain environmental cleanliness to ensure that government investments deliver lasting benefits.

One of the participants, Odugala, cautioned against the destruction of public facilities, saying: “Government cannot continue to build infrastructure, then citizens begin to destroy them.”

He also commended the Oborevwori administration for introducing the 13th-month salary for civil servants, describing it as a significant milestone in workers’ welfare.

With the state’s inherited legacy debt reportedly reduced from ₦463 billion to ₦63 billion, the administration now faces the task of meeting its first-quarter 2027 repayment target while sustaining investments in infrastructure, agriculture and public welfare.

The extent to which the government achieves both objectives will be an important measure of its fiscal management and its ability to translate debt reduction into tangible economic benefits for Deltans.