The Edo State Government has said that it is servicing a monthly Irrevocable Standing Payment Order of N385 million for the Radisson Hotel project.
Kassim Afegbua, the commissioner for information and strategy, disclosed this on Sunday in Benin.
|
|
Mr Afegbua said the obligation stems from a N25 billion capital market facility secured by the previous administration of Godwin Obaseki.
He noted that the liability has prompted a comprehensive review of the transaction and its underlying agreements.
|
|
|
|---|
According to him, Edo continues to bear the debt burden despite emerging concerns over the project’s equity arrangement.
He expressed concern that a private investor reportedly holds 80 per cent equity, while the state retains 20 per cent, despite substantial financial exposure.
Mr Afegbua said preliminary records show the state raised the N25 billion facility and began the project before introducing a private investor.
“The concern is not political; it is about understanding how public funds were deployed and how equity interests were structured,” he said.
He added that the reviewed documents do not clearly show the private investor’s financial contribution before the equity restructuring.
Mr Afegbua also said no evidence of a competitive bidding process had been identified during the assessment.
He explained that the review extends to other inherited projects, including the Museum of West African Art.
The commissioner said the exercise aims to determine the state’s financial obligations, liabilities and benefits.
He stressed that the Governor Monday Okpebholo administration in Edo is guided by due process, transparency and accountability in public finance management.
“We owe Edo people clarity on how their money was used,” Mr Afegbua said, describing it as essential for continuity and record-keeping.
He disclosed that, after the reviews, the government would act within the law, including engaging regulatory and anti-corruption agencies where necessary.
PDP says comment ‘misleading and politically motivated’
Meanwhile, the Peoples Democratic Party (PDP) in Edo has described Mr Afegbua’s comment on the Radisson Hotel project as “misleading and politically motivated”.
In a statement in Benin on Saturday, the PDP state Publicity Secretary, Dan Osa-Ogbegie, asserted that Mr Afegbua’s remarks formed part of what he called a “desperate smear campaign” aimed at discrediting the administration of former Governor Obaseki.
“We would ordinarily have ignored the outburst credited to Kassim Afegbua, particularly as the matter is already before competent courts, but for the sake of the unsuspecting public, we are compelled to respond,” Mr Osa-Ogbegie said.
“For the avoidance of doubt, the Radisson Hotel project was a properly structured PPP. Edo State’s N2 billion contribution was seed equity injected to de-risk the project and attract credible private capital,” he stated.
The party spokesperson explained that additional funds referenced by the state government, including portions of bond proceeds, were deployed as loans to a Special Purpose Vehicle established for the project, with clear repayment obligations tied to the hotel’s future operations.
“This is not plunder. This is development finance,” he said.
He further argued that the state retained equity in the project and dismissed claims that the hotel was sold cheaply or transferred to political cronies.
“At no point did Mr Godwin Obaseki have any direct or indirect ownership interest in the hotel. Suggestions to the contrary are false, malicious and defamatory,” Mr Osa-Ogbegie said.
He added that even before commencing operations, the state’s investment in the project had appreciated significantly, describing it as evidence of strategic, long-term economic planning.
READ ALSO: Edo has new police spokesperson
According to the PDP spokesperson, Mr Afegbua’s comments reflected “a frightening illiteracy in finance and contemporary development economics,” noting that instruments such as project-finance loans, equity contributions and asset-backed repayment structures were standard worldwide.
“What the Commissioner dismisses as ‘voodoo financing’ is the language of modern infrastructure development,” he said.
Mr Osa-Ogbegie accused the current administration of being “obsessed” with dismantling Obaseki-era projects, citing previous disputes involving the Museum of West African Art, the Ossiomo Power Project and other investments.
He warned that repeated public attacks on investors could damage Edo State’s credibility and scare away much-needed capital.
“How does chasing away investors create jobs? How does dragging strategic investments before anti-graft agencies improve the lives of our youths?” he asked.
He maintained that PDP would continue to defend what it described as Obaseki’s record of fiscal discipline, transparency and investment-led growth, urging Edo residents to “reject the politics of destruction” and demand governance focused on results rather than rhetoric.
(NAN)
Discover more from Premium Times Nigeria
Subscribe to get the latest posts sent to your email.
