Governor Godwin Obaseki of Edo State has accused the APC and federal mismanagement of causing inflated costs for the N28bn Radisson Hotel project. The state government attributes the variation to inflation induced by the APC-led Federal Government.
Governor Godwin Obaseki of Edo State has revealed how the All Progressives Congress (APC) allegedly influenced the increased costs of the N28 billion Radisson Hotel project. This accusation comes shortly after the APC accused his administration of mismanaging state resources.
The controversy began when the Edo State chapter of the APC, led by Chairman Emperor Jarret Tenebe, accused Governor Obaseki’s administration of squandering over N28 billion on the hotel project. Tenebe also claimed that the ownership status of the Radisson Hotel and other projects like the Edo Modular Refinery were shrouded in secrecy, calling on the Economic and Financial Crimes Commission (EFCC) to investigate the governor and his associates.
In response, the Edo State government, through a statement by Crusoe Osagie, Special Adviser to the Governor on Media Projects, attributed the cost variations to the APC-led Federal Government’s poor economic management and the resulting inflation. The statement, titled “Edo 2024: Clear Incompetence, Ignorance on Contemporary Governance Forcing APC to Deploy Diversionary Campaign Tactics,” was made available to newsmen in Benin City.
Investment in Hospitality Sector
Osagie highlighted the strategic importance of the Radisson Hotel to the state’s hospitality and tourism sectors. He noted that Edo currently hosts only one international hospitality chain, the Protea brand managed by Marriot, with Radisson being the second. The presence of more international brands is seen as crucial for attracting international events and boosting tourism.
Economic Challenges
The statement pointed out that various projects, including the Radisson Hotel, have experienced cost escalations due to the declining value of the naira and inflation induced by federal economic mismanagement. Osagie argued that these macroeconomic challenges necessitated contract variations, which the APC should understand if they had a basic grasp of economic dynamics.
Allegations of Mismanagement
Addressing further allegations, Osagie defended the administration’s transparency and efficiency in handling projects like the e-governance Enterprise Resource Planning (ERP) system and the Edo Modular Refinery. He criticized the APC for using diversionary tactics instead of addressing substantive issues.
Key Takeaways:
Accusations and Counterclaims: The APC accuses Governor Obaseki’s administration of mismanaging N28 billion, while the state government blames inflation and federal mismanagement for cost variations.
Strategic Importance: The Radisson Hotel is positioned as a critical asset for boosting Edo State’s hospitality and tourism sectors.
Economic Factors: The cost of projects has increased due to macroeconomic challenges, including inflation and the declining value of the naira.
Political Controversy: Both sides continue to trade accusations, highlighting the ongoing political tension in Edo State.
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