The Edo State Government has responded to allegations by the All Progressives Congress (APC) that it squandered N28 billion on a hotel project, attributing the contract sum variation to inflation caused by the federal government’s economic mismanagement.
The state government, in a statement signed by Crusoe Osagie, Special Adviser to the Governor on Media Projects, acknowledged that contract variations occurred due to the declining value of the naira and economic downturn.
While not denying the alleged amount, the government accused the APC of deploying diversionary tactics ahead of the 2024 election. The APC had called for an EFCC probe into the project, citing secrecy surrounding its ownership and management.
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Edo today boasts only one international hospitality chain, the Protea brand managed by Marriot, with Radisson being the second. Much as there are a number of quality local brands, the potential benefits of increasing the number of international brands bode well for the state’s nascent tourism sector.
“The state has lost the hosting rights to a lot of international events on account of the limited presence of international brands. The argument that the cost of the hotel has increased from the initial outlay is quite pathetic because that is on the APC-controlled Federal Government.
“As a result of their poor management of the economy and the declining value of the naira against other world currencies, a lot of projects have had to be subjected to contract variations.
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“Today, the development is costing more to complete because the fundamentals have changed and there is a need to reassess financing. The APC would appreciate this if they were better schooled and had a basic understanding of macroeconomic dynamics.”
Osagie also spoke on allegations made against the establishment and construction of projects like the e-governance Enterprise Resource Planning (ERP) system, Edo Modular Refinery and the EFCC investigation on the alleged mismanagement of the Central Bank of Nigeria, CBN, intervention in agriculture.
He advised APC to speak to issues rather than shadow-boxing.
