The Edo State Government has revealed it is saddled with servicing a staggering ₦385 million monthly debt obligation for the Radisson Hotel project in Benin City, a financial burden that has triggered a sweeping forensic review of the deal’s structure and equity arrangements.
Commissioner for Information and Strategy, Mr. Kassim Afegbua, disclosed the details in Benin on Sunday, framing the situation as a critical test of fiscal transparency and accountability for the administration of Governor Monday Okpebholo.
The Core of the Crisis: A Lopsided Deal?
The ₦385 million monthly payment is an Irrevocable Standing Payment Order (ISPO)—a direct mandate to deduct funds from the state’s allocation—servicing a ₦25 billion capital market facility secured by the previous administration. Preliminary findings, according to Afegbua, raise profound concerns: the state, which raised the entire facility and initiated the project, reportedly holds only a 20% equity stake. A private investor, introduced later, holds the controlling 80% share.
“The concern is not political; it is about understanding how public funds were deployed and how equity interests were structured,” Afegbua stated. This imbalance between financial risk (the state’s debt) and ownership benefit (a minority stake) is at the heart of the review. The commissioner noted that reviewed documents do not clearly show the private investor’s financial contribution prior to this equity restructuring, nor has evidence of a competitive bidding process for the partnership been identified.
Beyond Radisson: A Broader Audit of Inherited Liabilities
The scrutiny extends beyond the hotel. The government is conducting parallel assessments of other major inherited projects, including the Museum of West African Art (MOWAA). This indicates a systemic effort to map the state’s full portfolio of financial obligations, liabilities, and potential benefits accrued from past public-private partnerships. The goal, Afegbua explained, is to establish a clear record for continuity and ensure Edo citizens receive “clarity on how their money was used.”
Governance Principles and Potential Consequences
Afegbua stressed that the administration is guided by “due process, transparency and accountability in public finance management.” The review is positioned not as a political witch-hunt but as an institutional necessity. However, the commissioner made clear that findings could lead to legal and regulatory actions, including “engaging regulatory and anti-corruption agencies where necessary.” He called on former officials to cooperate with the process.
Contextualizing the Fiscal Pressure
To appreciate the weight of a ₦385 million monthly debt, consider that it totals ₦4.62 billion annually. This is a significant sum that could alternatively fund substantial portions of the state’s education or healthcare budgets. The review, therefore, is also a fight for fiscal space. This context makes the governor’s cited priorities—funding for institutions like Ambrose Alli University and Edo State University, and infrastructure delivery—more urgent amidst such constraining legacy debts.
Separate Issue: Clarifying the Power Supply
In a related clarification, Afegbua addressed the Government House’s power supply, stating Edo State has no ownership stake in the Ossiomo Power Plant. The state has adopted a mix of solar power and services from the Benin Electricity Distribution Company (BEDC) to improve cost efficiency, distancing current operations from another potential legacy agreement.
The Path Forward
The Edo State government now faces a complex challenge: managing a crippling monthly debt for a project where its financial exposure dramatically outweighs its ownership. The ongoing review will determine whether the deal can be renegotiated, if legal recourse is viable, or if the state must continue servicing a debt for an asset it minimally controls. The outcome will set a crucial precedent for how the state manages public-private partnerships and legacy liabilities in the future.
Reported by Imelda Osayande for the News Agency of Nigeria (NAN). Edited by Kamal Tayo Oropo.
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