Tensions between the Edo State government and former Governor Godwin Obaseki have escalated over the funding and state stake in the Radisson Hotel project located in Benin, the state capital.
The conflict reignited last week when the State Commissioner for Information and Strategy, Kassim Afegbua, challenged Obaseki’s assertion that the state allocated N2 billion to acquire the property, later developed into the hotel. Afegbua noted that the state is currently repaying a N25 billion loan sourced from the stock market at a monthly rate of N385 million through an irrevocable standing payment order from the state’s Internally Generated Revenue.
In response, Dan Osa-Ogbegie, Publicity Secretary of the Edo State chapter of the Peoples Democratic Party, accused the Okpebholo administration of engaging in destructive politics. He clarified that the hotel project was structured as a Public-Private Partnership, with the state’s N2 billion contribution serving as seed equity to attract private investment.
Osa-Ogbegie claimed that the state’s investment in the Radisson project has significantly appreciated, now conservatively valued at over N65 billion, with further increases expected once operations commence.
Reiterating the state government’s stance, Afegbua accused Obaseki’s regime of financial mismanagement, stating, “The Radisson Hotel project exemplifies patterns of profligacy, fraud, and lack of accountability.” He argued that Obaseki used state resources to fund a project before inviting a new investor who gained an 80% stake in the venture, leaving the state with only 20%.
Afegbua emphasized, “The Radisson Hotel remains a project of the Edo State Government, and every kobo spent will be accounted for.”
In a rebuttal, Obaseki’s media aide, Crusoe Osagie, accused the Okpebholo administration of hindering significant investments that could drive job creation and economic growth. He framed the Radisson Hotel as a key component of a broader tourism strategy, which includes other initiatives aimed at boosting local infrastructure.
Osagie asserted that the project was transferred to a private investor at a valuation multiple times higher than the state’s initial investment. He warned that this administration is discouraging investment and destroying jobs by delaying projects and dragging them through legal challenges.
