The event is taking place inside the Samson Siasia Sports Complex in Yenagoa, the state capital.
The governor and his deputy won re-election on the platform of the Peoples Democratic Party at the November 11 governorship poll.
They received their certificates of return from the Independent National Electoral Commission on November 17.
Diri polled a total of 175,196 votes to defeat his main rival, Timipre Sylva of the All Progressives Congress.
Dignitaries, groups and residents of the state are gathered in the venue for the inauguration.
Road leading to the sports complex are cordoned off by security operatives including, soldiers, policemen, men of the National Security and Civil Defence Corps, and the Federal Road Safety Corps, among others, forcing residents to trek long distances around the area.
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