The Edo State chapter of the Peoples Democratic Party (PDP) has rejected claims by the state Commissioner for Information and Strategy, Kassim Afegbua, over the Radisson Hotel project, describing the allegations as misleading.
The financial structure of the hotel has sparked a dispute between the immediate past administration led by former Governor Godwin Obaseki and the current government under Governor Monday Okpebholo. Afegbua had alleged on Wednesday that Edo State incurred a N25 billion debt on the Radisson Hotel, which was initiated during Obaseki’s tenure.
The project is currently under investigation, with a panel of the Edo State House of Assembly summoning Obaseki as part of its probe. The former governor has denied any wrongdoing, accusing the present administration of pursuing a political vendetta.
Afegbua claimed that Obaseki’s assertion that the state invested only N2 billion in the project was inaccurate, insisting that documents showed N25 billion was raised from the capital market and is being serviced by the state. He added that the N2 billion cited by Obaseki was used to acquire the property from the original owners before renovation and development commenced.
He further stated that the Okpebholo administration is currently paying about N385 million monthly from internally generated revenue through an irrevocable payment order linked to the N25 billion obligation.
However, the PDP, through its Publicity Secretary, Dan Osa-Ogbegie, accused the current government of engaging in what it termed “politics of destruction.” The party said Afegbua’s comments reflected a poor understanding of finance and development economics.
Osa-Ogbegie explained that the Radisson Hotel was executed as a Public-Private Partnership, noting that Edo State’s N2 billion contribution served as seed equity to de-risk the project and attract private investors. He said the core private investor provided substantial equity, while additional funds, including portions of bond proceeds, were structured as loans to a Special Purpose Vehicle responsible for constructing the hotel, with repayment tied to future operations.
According to the PDP, the arrangement represents standard development finance practice rather than misappropriation. The party claimed that even before operations began, the state’s investment in the project had appreciated significantly, with a conservative valuation exceeding N65 billion and further growth expected once the hotel becomes fully operational.
The party also dismissed allegations that the hotel was sold cheaply or handed to cronies, insisting that Edo State retained equity in the project and that Obaseki had no direct or indirect ownership interest in the hotel.
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