During its inaugural plenary session, the Delta State House of Assembly approved Governor Sheriff Oborevwori’s request for a N40bn credit facility. The loan is intended to address the longstanding pension arrears owed to retired primary schoolteachers and local government employees in the state.
Governor Oborevwori conveyed his administration’s collaboration with the state chapter of the Association of Local Governments of Nigeria (ALGON) in tackling the pension backlog. The proposed credit facility is expected to alleviate the challenges faced by senior citizens who dedicated their service to the local government level.
In his letter to the House, the governor also mentioned that Zenith Bank Plc has offered the credit facility to the 25 local government councils. The allocation of the facility will be prorated based on the councils’ respective outstanding debts to pensioners. Offer letters have already been issued to the councils by the bank.
The motion for approval was moved by the Majority Leader of the House, representing Aniocha North Constituency, Emeka Nwaobi. It was seconded by the member representing Sapele Constituency, Perkins Umukoro.
It is worth noting that just before the end of the previous administration led by Governor Ifeanyi Okowa, the 7th Assembly granted approval for a N71bn loan. The current approval signifies the new administration’s commitment to addressing the pension arrears and prioritizing the welfare of retirees in Delta State.
Key Highlights
Approval of N40bn credit facility to address pension backlog
- The Delta State House of Assembly has given its consent to Governor Sheriff Oborevwori’s request for a N40bn credit facility.
- The loan aims to address the accumulated pension arrears owed to retired primary schoolteachers and local government employees in the state.
Collaboration with Association of Local Governments of Nigeria (ALGON)
- Governor Oborevwori highlighted in his letter to the House that his administration is working together with the state chapter of ALGON to reduce the backlog of pension payments.
- The proposed loan will provide relief to senior citizens who served and retired at the local government level.
Partnership with Zenith Bank Plc for prorated facility allocation
- The governor mentioned that Zenith Bank Plc has made available the credit facility to the 25 local government councils.
- The bank has issued offer letters to the councils, with the facility being distributed in proportion to each council’s outstanding debt to pensioners.
