The Edo Assets Verification Committee has revealed that the state government’s equity in the Radisson Hotel project has dwindled to 20%, despite a substantial investment of N17.5 billion.
The committee’s chairman, Dr. Ernest Umakhihe, disclosed this during a press briefing in Benin on Thursday, as reported by the News Agency of Nigeria.
According to Umakhihe, the state government initially paid N2 billion for land acquisition as part of the project. However, ownership changes and governance lapses reduced Edo State’s stake in the venture.
“The transaction on the Radisson Hotel project leaves so much to be desired.
“The Radisson Hotel project was another area of concern, with ownership changes reducing Edo State’s equity to 20 per cent despite government N17.5 billion investment and an initial payment of N2billion for the acquisition of land,” he stated.
The committee urged the state government to reclaim its role as the core investor in the project, emphasizing accountability and transparency in managing public assets.
More insights
The Radisson Hotel controversy is one of several governance issues highlighted by the committee regarding the previous administration’s handling of public funds and contracts.
- The committee uncovered a road contract debt of N200 billion, with allegations that contractors returned mobilization fees to officials without proper documentation. It also found breaches in ICT projects, including a N5 billion cybersecurity software commitment, of which N1.7 billion has already been spent.
- In addition, irregularities were identified in the Edo State Oil Palm Project Office, where significant expenditures were routed through consultants.
- Another major concern was the Museum of West African Arts (MOWAA). Despite contributing N3.8 billion to the project and providing government land, it noted that the Edo State government holds no equity in the museum, which operates as an independent trust.
- The committee also noted the urgency of leveraging the dry season for road construction, especially for projects hastily awarded during the election period in September 2024. It promised a comprehensive final report in 2025, which will include detailed findings across other sectors such as education, health, and agriculture.
These findings highlight the broader governance challenges and lack of oversight in project management under the previous administration.
What you should know
- The Edo State Government, under the leadership of past governor Governor Godwin Obaseki, initiated the Radisson Hotel Project as part of its strategy to boost tourism and stimulate economic growth.
- In July 2023, Obaseki issued a letter of intent to Shapoorji Pallonji, the preferred contractor, to develop the 170-room international upscale hotel in Benin City.
- The intention behind the Radisson Hotel was to strengthen the state’s infrastructure, showcasing the government’s commitment to attracting investment and fostering economic development.
- The project was designed to enhance the hospitality sector, boost tourism, and increase the state’s tourism receipts. Construction was slated for completion within 12 to 16 months of commencement.
