By Mercy Neme, Asaba – Nov. 4, 2025
In a unanimous decision on Tuesday, the Delta State House of Assembly approved Governor Sheriff Oborevwori’s request for the re-issuance of an N18.1 billion bank guarantee from Sterling Bank to Access Bank Plc, in favour of Bastanchury Power Solutions Nigeria Limited, the developers of the Asaba Independent Power Plant.
The approval, communicated through a letter read during plenary by Speaker Dennis Guwor, underscores the state government’s commitment to strengthening its partnership with Access Bank in managing the state’s composite Internally Generated Revenue (IGR) system.
Governor Oborevwori explained that the re-issuance is a critical step in enhancing the state’s revenue management framework, ensuring improved systems, transparency, and efficiency in financial operations. He noted that the existing IGR account is currently tied to a bank guarantee exceeding N18 billion issued by Sterling Bank on behalf of Bastanchury Power under the Asaba Independent Power Purchase Agreement (PPA).
Under the PPA, the state government holds two key financial obligations: the issuance of the N18.1 billion bank guarantee to cover compensation and buy-out costs, renewable annually, and a monthly Irrevocable Standing Payment Order (ISPO) of N430.7 million, with a 2.5% annual increment in capacity charges. These payments cover the operations, maintenance, and capacity costs of the power infrastructure, all drawn from the composite IGR account domiciled with Access Bank.
“The State Executive Council has approved Access Bank to issue a fresh N18.1 billion bank guarantee in the same format as the existing Sterling Bank guarantee. Once the new guarantee is issued, the Sterling Bank guarantee will be cancelled to ensure a seamless transition,” the governor stated.
Following the governor’s presentation, the Leader of the House, Emeka Nwaobi, moved a motion for approval, which was unanimously adopted after a voice vote by the Speaker and seconded by Deputy Speaker Arthur Akpowowo.
The re-issuance of this substantial guarantee signals Delta State’s commitment to ensuring financial stability and operational continuity for its flagship power project, aiming to boost energy infrastructure and revenue performance across the state.
Sub Zero ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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