Edo Government Moves To Petition EFCC Over Alleged ₦25bn Radisson Hotel Scam Involving Obaseki

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The Edo State Government has announced plans to escalate a financial controversy surrounding the Radisson Hotel project in Benin City, with officials indicating that an anti-corruption petition may soon be filed against individuals linked to the previous administration.

Authorities in the state allege that the hotel investment arrangement, which began during the tenure of former governor Godwin Obaseki, may involve questionable financial decisions. According to officials, the matter is currently under internal review before being formally presented to the Economic and Financial Crimes Commission (EFCC).

Government Signals Possible EFCC Action

The state’s Commissioner for Information and Strategy, Prince Kassim Afegbua, disclosed that the government intends to submit a petition to the anti-graft agency once preliminary investigations are concluded.

Afegbua stated that the review was initiated after concerns emerged regarding how funds connected to the Radisson Hotel development were sourced and subsequently structured within the project’s ownership arrangement.

Allegations Surrounding the Hotel Investment

According to the state government, the earlier administration reportedly raised approximately ₦25 billion through the stock market for the hotel project.

Officials now question how the investment structure later evolved into a partnership where a private investor allegedly obtained about 80 percent equity, leaving the state with a significantly smaller share in the project.

The government argues that such an arrangement raises questions about the financial justification behind the distribution of ownership.

Loan Repayment Continues Despite Ownership Changes

Another issue highlighted by state officials involves the repayment obligations tied to the original financing arrangement.

The government claims that Edo State is still servicing the loan used for the project through an Irrevocable Standing Payment Order (ISPO), which reportedly deducts about ₦385 million every month.

Authorities argue that the continued repayment obligation raises concerns because the state’s shareholding in the project is reportedly far smaller than expected.

Questions Raised About Private Investor

State officials have also raised concerns about the private investor linked to the project.

According to the government, the company associated with the investment was allegedly incorporated in May 2024 and does not appear to have a longstanding track record in the hospitality sector.

In addition, officials claim there was no competitive bidding process before the investor secured a majority stake in the hotel project.

Political Back-and-Forth Between Parties

The allegations have emerged amid criticism from the Peoples Democratic Party (PDP), which has accused the current administration of pursuing political vendettas instead of focusing on governance.

PDP representatives reportedly described the administration of Governor Monday Okpebholo as lacking clear direction and relying heavily on political rhetoric.

However, the state government rejected those accusations, insisting that the investigation is driven by a commitment to accountability and transparency.

Clarification on Ossiomo Power Plant

Afegbua also addressed claims that the present administration was attempting to undermine the Ossiomo Power Plant, a project linked to the previous government.

He explained that the state had simply reduced its reliance on that facility by exploring alternative power solutions, including solar energy and supply from the Benin Electricity Distribution Company (BEDC).

According to him, the move was intended to reduce operational costs rather than dismantle existing infrastructure.

Commentary and Analysis

The controversy surrounding the Radisson Hotel project highlights broader debates about public-private partnerships and financial transparency in government-funded developments.

Large infrastructure and hospitality projects often require complex financing arrangements, but questions frequently arise when the structure of ownership appears to shift significantly after public funds have been committed.

If the Edo State Government proceeds with its planned petition, the EFCC investigation could determine whether the investment arrangement followed proper financial and procurement procedures.

Beyond the legal implications, the issue also reflects Nigeria’s wider political environment, where disputes between successive administrations frequently lead to renewed scrutiny of past projects.

How the matter unfolds may ultimately shape public perception of governance, financial oversight, and accountability within Edo State.