₦800m Loan Scandal: Bomadi Councillors Move to Freeze Council Accounts, Write Zenith Bank

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Dagidi Andaye

The controversy trailing allegations of financial impropriety and the alleged forgery of councillors’ signatures in the procurement of an ₦800 million loan by the Chairman of Bomadi Local Government Council, Hon. Dagidi Andaye, has escalated sharply, as 15 councillors of the Legislative Arm take decisive legal action.

In a bold move to halt what they describe as continued abuse of public funds, the councillors, through their legal representatives, have formally written to Zenith Bank Plc, demanding an immediate stoppage of further releases of funds to the Bomadi Local Government Council—except for the payment of salaries—pending the determination of impeachment proceedings before the Delta State House of Assembly and the conclusion of ongoing investigations by the Economic and Financial Crimes Commission (EFCC).

The letter, dated January 25, 2026, was addressed to the Branch Manager of Zenith Bank Plc, Ughelli, Delta State, and titled: “RE: Demand for Stoppage of Release of Funds to Bomadi Local Government Council Except for Payment of Salaries.” It was signed by Prof. Damfebo K. Derri on behalf of F.T. Okorotie, SAN & Co. (Abeokuta Chambers), Yenagoa, Bayelsa State, who identified themselves as solicitors to the Bomadi Local Government Legislative Arm.

According to the letter, the firm stated:
“We are solicitors to the Bomadi Local Government Legislative Arm, ably represented by its Leader, Honourable ThankGod Tikiri, hereinafter referred to as ‘our client,’ on whose behalf and instructions we write you this letter.”

The councillors alleged that Hon. Dagidi Andaye obtained a loan of Eight Hundred Million Naira (₦800,000,000) from Zenith Bank without disclosing the purpose of the loan to the elected members of the Legislative Arm.

They further claimed that investigations conducted in the course of their statutory oversight functions revealed that the loan was secured without the consent or approval of the Legislative Arm, in clear violation of the Delta State Local Government Law (as amended), which mandates legislative approval for loans of such magnitude.

More troubling, the councillors alleged that the signatures of about 15 members of the Legislative Arm were forged to facilitate the loan transaction.

“This act is not only a breach of the extant procurement laws of Delta State but also constitutes an economic crime,” the letter stated, adding that the EFCC is already investigating the matter following a petition dated January 8, 2026, submitted by the councillors.

The lawmakers disclosed that, arising from the alleged loan irregularities and other accusations including gross misconduct, abuse of office, and misappropriation of public funds, 15 out of the 20 councillors have issued a Notice and Recommendation to the Speaker of the Delta State House of Assembly, seeking the removal of Hon. Andaye from office.

They noted that the action was taken pursuant to Section 31(1) of the Delta State Local Government Law, which empowers the Legislative Arm to initiate impeachment proceedings against a council chairman. The Notice and Recommendation, they said, is currently pending before the House of Assembly.

Calling on Zenith Bank to demonstrate corporate responsibility, the solicitors urged the bank to align with principles of accountability and transparency by halting further fund disbursements to the council—except for salaries—until the impeachment process and EFCC investigation are concluded.

The letter warned that failure to comply would leave the councillors with no option but to pursue legal action to protect their constitutional and statutory rights.

Copies of the correspondence were forwarded to key state officials, including the Accountant-General of Delta State, the Auditor-General of the State, the Auditor-General for Local Government, the Commissioner for Local Government Affairs, and the Chairman of the Local Government Service Commission.

The crisis in Bomadi deepened earlier this month after the councillors formally served Hon. Andaye with a notice of impeachment, accusing him of gross misconduct, abuse of office, misappropriation of public funds, and the alleged fraudulent procurement of the ₦800 million loan—allegations that have cast a long shadow over the council’s administration and sparked growing calls for transparency and justice.

The impeachment petition, titled “Impeachment Notice and Recommendation for Removal from Office of the Chairman, Bomadi Local Government Area,” dated January 5, 2026, was submitted to the Speaker of the Delta State House of Assembly and the Chairman of the House Committee on Local Government.

However, the councillors expressed concern that more than three weeks after submitting the petition, no public action or acknowledgment has been made by the Speaker or any investigative panel, contrary to the provisions of Section 31(1) of the Delta State Local Government Law (as amended).