Delta State House of Assembly has approved a N40 billion credit facility request sent to it by the state Governor, Sheriff Oborevwori.

The loan, according to the governor in a letter to the House of Assembly at the beginning of the week, is intended to offset a chunk of arrears of unpaid pension to retirees of the 25 local government areas of the state, including teachers.

In its maiden plenary after the inauguration of the eighth Assembly on June 27, 2023, the state legislators unanimously approved the governor’s request of N40billion facility from Zenith Bank for the state chapter of the Association of Local Governments of Nigeria (ALGON) to defray substantial part of outstanding retirement benefits to local government pensioners.

This followed approval of the letter addressed to the legislature and read in the Assembly by the Speaker, Hon. Emomotimi Dennis Guwor.

Oborevwori had informed the Assembly that his administration was collaborating with the state chapter of the ALGON to reduce the backlog of pension owed retired primary school teachers and other categories of local government employees in the state.

The governor’s letter of intent read in part: “Zenith Bank Plc has availed the 25 local government councils in the state the N40 billion facility in a prorated manner, in tune with their respective indebtedness to pensioners, for which offer letters have been served to all the local government areas by the bank.”

Other reasons given to the legislature by Oborevwori for the loan facility included: “Special reason conditions precedent as well as Global Standard Instruction (GSD) Mandate/Set-off Agreement that was expected to be met by the obligor (the respective local government areas) and relevant stakeholders, including an approval by the state Assembly.”

The motion for the approval was moved by the Majority Leader of the Assembly and member representing Aniocha North state constituency, Hon Emeka Nwaobi, which was seconded by Hon. Perkins Umukoro, member representing Sapele state constituency.