Edo State’s N28bn Hotel Controversy: Obaseki Points Finger At APC-Led Federal Government

In response to accusations from the Edo State chapter of the All Progressives Congress (APC) regarding the alleged mismanagement of over N28 billion on a hotel project, Governor Godwin Obaseki’s administration has attributed the inflated contract costs to economic mismanagement by the APC-led Federal Government……..CONTINUE READING

The accusations were initially made by the Edo State chairman of the APC, Emperor Jarret Tenebe, who at a press conference on Saturday, criticized Governor Obaseki’s administration for squandering state resources on projects like the Radisson hotel. Tenebe also called for the Economic and Financial Crimes Commission (EFCC) to investigate Governor Obaseki, the PDP governorship candidate, Asue Ighodalo, and his running mate, Osarodion Ogie.

Responding to these allegations, the state government released a statement titled “Edo 2024: Clear Incompetence, Ignorance on Contemporary Governance Forcing APC to Deploy Diversionary Campaign Tactics,” which was signed by Crusoe Osagie, Special Adviser to the Edo State Governor on Media Projects.

While the statement did not deny the amount quoted by the APC for the hotel reconstruction project, it blamed the contract variations on the economic conditions created by the APC-led Federal Government. Osagie pointed out that the declining value of the naira and poor economic management necessitated changes in project costs.

“They make light of the investment in Radisson Hotel, a key addition to the state’s hospitality landscape,” Osagie stated. “Edo today boasts only one international hospitality chain, the Protea brand managed by Marriot, with Radisson being the second. Much as there are a number of quality local brands, the potential benefits of increasing the number of international brands bode well for the state’s nascent tourism sector.”

Osagie further argued that the cost increase of the hotel was a direct result of the APC-controlled Federal Government’s economic policies. “The argument that the cost of the hotel has increased from the initial outlay is quite pathetic because that is on the APC-controlled Federal Government,” he said. “As a result of their poor management of the economy and the declining value of the naira against other world currencies, a lot of projects have had to be subjected to contract variations.”

He also addressed allegations concerning other state projects like the e-governance Enterprise Resource Planning (ERP) system, Edo Modular Refinery, and the EFCC investigation into the alleged mismanagement of the Central Bank of Nigeria (CBN) intervention in agriculture. Osagie advised the APC to focus on substantive issues rather than resorting to diversionary tactics.