Recognising the urgency to resolve the backlog of pension dues owed to retired primary school teachers and local government employees, the Delta State House of Assembly has given its consent to Governor Sheriff Oborevwori’s request for a loan of ₦40 billion from Zenith Bank Plc.
This funding will help alleviate the burden and ensure prompt payment of pensions.
In a letter addressed to the House, the governor elaborated on the objective of the loan. Its primary focus is to support the 25 councils in the state by alleviating a large portion of the accrued pension liabilities faced by local government pensioners.
During the plenary session, the Speaker of the House, Emomotimi Guwor, read out a letter that highlighted the conditions necessary for accessing the approved loan. This approval was granted as a result of meeting the relevant requirements.
In a meeting conducted at the governor’s office, where council chairmen and other stakeholders were present, it was resolved to pursue a loan from a commercial bank. The primary objective was to fulfill the payment requirements for the retirees, as acknowledged by the governor.
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The governor explained that Zenith Bank has granted the loan to the 25 councils in a prorated manner, aligning with their individual debts to pensioners. Offer letters outlining the terms of the facility have been sent to all the chairmen by the bank.
The House Majority Leader, Emeka Nwaobi, accentuated the significance of the credit facility, stressing that clearing the backlog owed to council pensioners would improve the lives of many families in the state, bringing smiles to their faces.
He called attention to the impact of pension non-payment, noting that many retirees had lost their lives prematurely as a result. Pointing to the urgency of the situation, he urged the lawmakers to approve the Executive’s request to prevent any further loss of lives.
The Minority Leader, Edafe Emakpor, and the member representing Bomadi constituency, Oboro Preyor, stressed the need for the government to address the issues faced by pensioners at the council level.
The request was granted by the House after the Majority Leader, Emeka Nwaobi, proposed a motion, which received endorsement from the Chief Whip, Perkins Umukoro.
Expressing gratitude, Guwor praised the lawmakers for their proactive support in addressing the request, ensuring a robust synergy between the state Assembly and the executive to drive greater socio-economic development in the state.