By Imelda Osayande
Benin, Dec. 14, 2025 (NAN) – The Edo State Government has revealed it is saddled with servicing a massive ₦385 million monthly debt obligation for the Radisson Hotel project, a financial burden that has triggered a comprehensive forensic review of the entire transaction.
The Commissioner for Information and Strategy, Mr. Kassim Afegbua, disclosed the staggering figure in Benin on Sunday, explaining that the payment is enforced through an Irrevocable Standing Payment Order (ISPO). An ISPO is a direct mandate to a state’s account officer to deduct a specified sum from its monthly allocation from the Federation Account, prioritizing debt service above other expenditures.
Afegbua traced the obligation to a ₦25 billion capital market facility secured by the previous administration. “The liability has prompted a comprehensive review of the transaction and its underlying agreements,” he stated. This review is not merely administrative; it is a deep dive into the project’s financial architecture, which has raised significant red flags.
The Core Concern: An Imbalanced Equity Structure
The commissioner pinpointed a critical anomaly: despite the state raising the entire ₦25 billion facility and initiating the project, preliminary records indicate a private investor now holds 80% equity, while Edo State retains only a 20% stake. This structure is highly unusual in public-private partnerships (PPPs), where equity typically reflects capital contribution and risk assumption.
“The concern is not political; it is about understanding how public funds were deployed and how equity interests were structured,” Afegbua emphasized. He revealed that reviewed documents do not clearly show the private investor’s financial contribution prior to this equity restructuring, raising questions about the valuation of its input.
Furthermore, the commissioner noted that no evidence of a competitive bidding process in selecting the private partner had been identified. This lack of transparency in partner selection is a major governance concern, as it bypasses safeguards designed to ensure value for public money.
Broader Implications and Governance Stance
Afegbua clarified that the review extends beyond the Radisson Hotel to other inherited projects, such as the Museum of West African Art (MOWAA). The exercise aims to definitively map the state’s financial obligations, liabilities, and actual benefits.
“We owe Edo people clarity on how their money was used,” he said, framing the review as essential for public accountability and proper record-keeping. He stressed that the Governor Monday Okpebholo administration is committed to due process, transparency, and accountability in public finance management.
The commissioner warned that findings from the review could lead to legal actions, including engagements with regulatory and anti-corruption agencies. He called on former public officials to cooperate with the process.
Addressing Other Issues
Responding to opposition criticism, Afegbua urged restraint to allow institutional reviews to conclude. On a separate matter, he clarified that the state has no ownership stake in the Ossiomo Power Plant, and the Government House now uses a mix of solar power and supplies from the Benin Electricity Distribution Company (BEDC) for cost efficiency.
He concluded by reiterating the governor’s focus on infrastructure delivery and funding for state institutions, including Ambrose Alli University and Edo State University, while ensuring past projects are scrutinized to protect public funds. (NAN) (www.nannews.ng)
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Edited by Kamal Tayo Oropo
