The Edo State Government has disclosed that it is currently servicing an Irrevocable Standing Payment Order (ISPO) of about N85 million monthly, arising from a N25 billion capital market facility obtained during the immediate past administration for the Radisson Hotel project in Benin City.
The Commissioner for Information and Strategy, Prince Kassim Afegbua, who disclosed this in a statement at the weekend, said the development has triggered a broader review of the transaction.
Afegbua explained that although Edo State continues to bear the financial obligation tied to the hotel project, questions have emerged regarding the project’s equity structure.
He expressed concern over the reported allocation of 80 per cent equity to a private investor, with Edo State retaining 20 per cent, despite the state’s substantial financial exposure.
According to him, preliminary records available to the current administration indicate that the state raised the ₦25 billion facility in its name and commenced the project before a private investor was introduced.
“The concern is not political; it is about understanding how public funds were deployed and how equity interests were structured in a project financed with state resources,” Afegbua said.
He added that documentation reviewed so far does not clearly establish the scale of financial contribution, if any, made by the private investor prior to the equity restructuring.
Reacting, the Edo State chapter of the Peoples Democratic Party (PDP), through its Publicity Secretary, Dan Osa-Ogbegie, accused the Okpebholo-led administration of mounting a smear campaign against former Governor Godwin Obaseki over the Radisson Hotel project.
The PDP accused the administration of lacking ideas, vision, and a clear understanding of modern governance.
In a statement issued on Saturday, Osa-Ogbegie described the current administration as driven by vendetta and propaganda rather than purposeful leadership.
He criticised Afegbua for allegedly describing the N2 billion invested by the immediate past administration as “voodoo financing.”
“It betrays a frightening illiteracy in finance, social investments, and contemporary development economics,” he said.
“For the avoidance of doubt, the Radisson Hotel project was structured as a Public-Private Partnership. Edo State’s N2 billion contribution was seed equity injected to de-risk the project and attract credible private capital.”
He explained that funds referenced by the present government were loans to the project’s special purpose vehicle with defined repayment obligations.
Osa-Ogbegie said the state’s investment had already appreciated significantly even before operations commenced, dismissing claims that the project was sold cheaply or handed to cronies.