The Delta State House of Assembly has approved Governor Sheriff Oborevwori’s request for the re-issuance of an ₦18.1 billion bank guarantee in favour of Bastanchury Power Solutions Nigeria Limited, the developer of the Asaba Independent Power Project (IPP). The approval authorizes the transfer of the bank guarantee from Sterling Bank to Access Bank Plc, signaling a new phase in the state’s efforts to expand its energy infrastructure and strengthen power supply within the capital territory.
The decision was reached during Tuesday’s plenary session following the reading of a formal request from the governor by the Speaker, Rt. Hon. Dennis Guwor. The governor explained that the re-issuance was necessary to facilitate Access Bank’s new partnership with the Delta State Government, particularly in managing the state’s composite Internally Generated Revenue (IGR). According to him, the move is expected to improve financial efficiency, revenue transparency, and project sustainability.
Transition to Access Bank
Governor Oborevwori noted that the state’s existing IGR account had long been tied to the initial bank guarantee issued by Sterling Bank on behalf of Bastanchury Power under the Asaba Independent Power Purchase Agreement (PPA). The new arrangement transfers this financial commitment to Access Bank, which has recently been engaged by the state as its lead banking partner for IGR management.
He explained that Delta State’s obligations under the PPA are twofold.
“The first obligation is the issuance of an ₦18.1 billion Bank Guarantee to cover compensation payments and the buy-out amount stipulated in the agreement, renewable annually,” Oborevwori said.
“The second involves the issuance of a monthly Irrevocable Standing Payment Order (ISPO) of ₦430.7 million, with a 2.5% annual increment to cover capacity, operations, and maintenance costs for the power infrastructure. These payments will be drawn directly from the composite IGR account domiciled with Access Bank.”
The governor emphasized that the re-issuance is purely a financial re-alignment, ensuring the state maintains its contractual obligations under the PPA while benefiting from the improved terms and efficiency that come with the new IGR structure.
Lawmakers Endorse the Request
After the letter was read, the Leader of the House, Hon. Emeka Nwaobi, moved a motion for approval, which was seconded by the Deputy Speaker, Hon. Arthur Akpowowo. The motion received unanimous support through a voice vote, demonstrating bipartisan backing for the governor’s initiative.
In his remarks, the Speaker, Hon. Guwor, commended the state government for its proactive fiscal management and for taking steps to strengthen the power sector, which remains a key driver of industrial and economic growth. He noted that the Asaba Power Project, when fully operational, will significantly improve electricity supply across the capital city and adjoining areas, reducing the state’s dependence on the national grid.
The approval is expected to fast-track the next phase of work on the Asaba Independent Power Project, a key infrastructure initiative designed to boost industrialization, attract investment, and support the state’s Smart Delta Agenda.
Ensuring Continuity and Financial Transparency
Governor Oborevwori reassured lawmakers that the Sterling Bank guarantee would be cancelled immediately after Access Bank issues the new one, ensuring a seamless transition with no duplication of obligations. He also emphasized that the partnership with Access Bank will enable better monitoring and accountability of revenue inflows, allowing the government to meet its financial commitments efficiently.
He stated that the re-issuance aligns with the State Executive Council’s approval of a broader financial restructuring initiative intended to consolidate IGR operations, enhance liquidity, and ensure timely funding of major capital projects.
Broader Fiscal Commitments
The governor’s latest request comes against the backdrop of Delta State’s continued efforts to improve fiscal discipline and transparency. In August, Governor Oborevwori approved the immediate release of ₦10 billion to offset outstanding pension arrears owed to retirees. According to official data, his administration has paid over ₦36 billion to service pensions since assuming office, while maintaining a monthly disbursement of ₦1.4 billion to meet ongoing obligations to pensioners.
This steady financial performance, analysts say, has positioned Delta among Nigeria’s more fiscally responsible states, with a strong balance between infrastructure investment and social welfare spending. The Asaba IPP, in particular, is seen as a cornerstone project capable of transforming Delta’s power landscape, supporting local businesses, and attracting manufacturing investment to the region.
Strategic Importance of the Asaba IPP
The Asaba Independent Power Project is expected to deliver reliable and cost-effective electricity to government institutions, industrial clusters, and residential areas. It is a public-private partnership (PPP) between the Delta State Government and Bastanchury Power Solutions, structured to ensure long-term sustainability through guaranteed payments backed by the state’s IGR.
Upon completion, the project will not only reduce dependence on diesel generators but also cut operational costs for public facilities, promote cleaner energy use, and enhance the ease of doing business within the state capital.
By approving the re-issuance of the ₦18.1 billion bank guarantee, the Delta State Assembly has reaffirmed its support for the governor’s infrastructure agenda — a move expected to accelerate progress on one of the state’s most ambitious power projects to date.
