The Edo chapter of the Peoples Democratic Party (PDP) says recent comments by the state Commissioner for Information and Strategy, Mr Kassim Afegbua, on the Radisson Hotel project are misleading and politically motivated.
In a statement in Benin on Saturday, the PDP state Publicity Secretary, Mr Dan Osa-Ogbegie, asserted that Afegbua’s remarks formed part of what he called a “desperate smear campaign” aimed at discrediting the administration of former Gov. Godwin Obaseki.
“We would ordinarily have ignored the outburst credited to Kassim Afegbua, particularly as the matter is already before competent courts, but for the sake of the unsuspecting public, we are compelled to respond,” Osa-Ogbegie said.
The News Agency of Nigeria (NAN) reports that Afegbua had earlier questioned the financing and ownership structure of the Radisson Hotel project in Benin, alleging impropriety in the use of public funds under the Obaseki administration.
However, the publicity secretary said the project was structured as a Public-Private Partnership (PPP) in line with globally accepted development finance practices, insisting that no public funds were misappropriated.
“For the avoidance of doubt, the Radisson Hotel project was a properly structured PPP. Edo State’s N2 billion contribution was seed equity injected to de-risk the project and attract credible private capital,” Osa-Ogbegie stated.
The party spokesperson explained that additional funds referenced by the state government, including portions of bond proceeds, were deployed as loans to a Special Purpose Vehicle established for the project, with clear repayment obligations tied to the hotel’s future operations.
“This is not plunder. This is development finance,” he said.
He further argued that the state retained equity in the project and dismissed claims that the hotel was sold cheaply or transferred to political cronies.
“At no point did Mr Godwin Obaseki have any direct or indirect ownership interest in the hotel. Suggestions to the contrary are false, malicious and defamatory,” Osa-Ogbegie said.
He added that even before commencing operations, the state’s investment in the project had appreciated significantly, describing it as evidence of strategic, long-term economic planning.
According to the PDP spokesman, Afegbua’s comments reflected “a frightening illiteracy in finance and contemporary development economics,” noting that instruments such as project-finance loans, equity contributions and asset-backed repayment structures were standard worldwide.
“What the Commissioner dismisses as ‘voodoo financing’ is the language of modern infrastructure development,” he said.
Osa-Ogbegie accused the current administration of being “obsessed” with dismantling Obaseki-era projects, citing previous disputes involving the Museum of West African Art, the Ossiomo Power Project and other investments.
He warned that repeated public attacks on investors could damage Edo State’s credibility and scare away much-needed capital.
“How does chasing away investors create jobs? How does dragging strategic investments before anti-graft agencies improve the lives of our youths?” he asked.
He maintained that PDP would continue to defend what it described as Obaseki’s record of fiscal discipline, transparency and investment-led growth, urging Edo residents to “reject the politics of destruction” and demand governance focused on results rather than rhetoric.
