The Edo State chapter of the Peoples Democratic Party (PDP) has firmly rejected claims made by the state government regarding the Radisson Hotel project, which alleges that it has left Edo State with a debt of ₦25 billion. The PDP described these allegations as misleading and politically motivated.

This controversy has intensified the tensions between the previous administration of former Governor Godwin Obaseki and the current government led by Governor Monday Okpebholo. The Edo State House of Assembly has launched an investigation into the hotel project.

Earlier this week, Kassim Afegbua, the Commissioner for Information and Strategy, claimed that the state incurred a liability of ₦25 billion from the Radisson Hotel project initiated during Obaseki’s tenure. He stated that documents indicated the funds were sourced from the stock market, and the state is currently servicing this debt with ₦385 million monthly from its Internally Generated Revenue (IGR). Afegbua also disputed Obaseki’s assertion that the state invested only ₦2 billion, arguing that this amount only covered the initial purchase of the building and did not include further financial commitments.

In response, the PDP, through its Publicity Secretary Dan Osa-Ogbegie, accused the Okpebholo-led administration of engaging in what they termed a “politics of destruction.” Osa-Ogbegie asserted, “The Radisson Hotel project has become the latest victim of this administration’s reckless attacks on projects initiated by Godwin Obaseki.” He described Kassim Afegbua’s statement as a mix of ignorance and mischief, highlighting a concerning lack of understanding of modern finance and development economics.

The PDP clarified that the hotel was structured as a Public-Private Partnership (PPP), where Edo State’s ₦2 billion served as seed equity to mitigate risks and attract reliable private investors. They explained that the remaining funds referenced by the government were project finance loans funneled through a Special Purpose Vehicle (SPV), with clear repayment plans connected to the hotel’s future operations.

“Public-Private Partnerships, equity injections, and asset-backed loans are not crimes. They are standard tools in modern infrastructure development,” the statement read. “This was development finance, not plundering.”

The PDP further claimed that, even before operations commenced, the state’s investment in the Radisson Hotel had significantly appreciated, with a conservative valuation of over ₦65 billion expected to grow as operations fully begin. They dismissed allegations that the project was sold cheaply or handed over to political allies, insisting that Edo State maintains equity in the hotel and that Obaseki has no direct or indirect ownership interest in the project.

“The insinuation that the project was sold for a pittance or given to cronies is false, malicious, and defamatory,” the party stated. 

The PDP concluded by urging the state government to focus on governance rather than politicizing development projects, warning that ongoing attacks on legacy investments could undermine investor confidence in Edo State.