The Edo State Government and former Governor Godwin Obaseki have renewed a public dispute over the funding and ownership structure of the Radisson Hotel project in Benin City, the state capital.
The disagreement follows comments by the Commissioner for Information and Strategy, Kassim Afegbua, who last week faulted Obaseki’s claim that the state invested ₦2bn to acquire the property that was later developed into the hotel.
Afegbua said the state government took a ₦25bn loan from the stock market for the project, which he said was being repaid through a monthly deduction of ₦385m from the state’s Internally Generated Revenue via an irrevocable standing payment order.
However, the Edo State chapter of the Peoples Democratic Party, through its Publicity Secretary, Dan Osa-Ogbegie, countered the claim, describing the allegations as politics of destruction. He said the Radisson Hotel was developed under a Public-Private Partnership arrangement, with the state’s ₦2bn contribution serving as seed equity to de-risk the project and attract private investors.
Osa-Ogbegie added that the state’s investment had appreciated significantly and was conservatively valued at over ₦65bn even before the hotel commenced operations.
Restating the state government’s position on Sunday, Afegbua alleged that the Radisson Hotel and the Museum of West African Art projects followed a pattern of financial mismanagement during the Obaseki administration. He claimed that despite the state sourcing ₦25bn for the project, it ended up retaining only 20 per cent equity after a private investor was brought in.
According to him, the loan is still being serviced by the state government, adding that all funds invested in the project would be accounted for.
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In response, media aide, Crusoe Osagie, accused the current administration of deliberately stalling major investments capable of driving employment and economic growth.
Osagie said the Radisson Hotel was part of a broader tourism development strategy that included the Museum of West African Art, the Benin Royal Museum and other supporting infrastructure.
He explained that after the initial government investment, the project was transferred to a private investor at a higher valuation, with the investor assuming full assets and liabilities, while the state retained 20 per cent equity.
Osagie warned that the projects were designed to generate direct and indirect employment for more than 50,000 people, adding that continued criticism and legal actions could discourage investors and undermine economic growth in the state.