A former Chief Press Secretary in Edo State, Mr John Mayaki, has criticised the administration of former Governor Godwin Obaseki’s investment model, questioning whether the state secured commensurate value from some projects to which substantial public resources and assets were committed.
Mayaki contrasted the former administration’s handling of projects such as the Radisson Blu Hotel and the Museum of West African Art (MOWAA) with Governor Monday Okpebholo’s decision to secure equity stakes for Edo State in two electricity projects with a combined proposed generation capacity of 300 megawatts.
He said an administration that projected itself as private-sector driven should have been careful to ensure that every naira, parcel of land and financial obligation committed by the state produced clearly defined and proportionate benefits for taxpayers.
‘You cannot preach investment sophistication and then leave the public struggling to understand what it owns after its money and assets have been committed,’ Mayaki said.
He said the contrast with Okpebholo was striking, citing the governor’s 10 per cent stake for Edo in the 100MW Ologbo power project and another 10 per cent interest in the proposed 200MW Edo North Independent Power Project.
Mayaki said the Ologbo transaction was particularly significant because the state secured its interest without making a direct financial investment in the power plant.
‘Obaseki was celebrated as an investment banker and technocrat, so the standard expected of him was even higher,’ Mayaki said.
‘The question is not how impressive a project sounds at commissioning. The question is: what did Edo contribute, what does Edo own and what will Edo people ultimately receive?
‘Okpebholo has shown that government can welcome private capital, protect the treasury and still insist that Edo has a seat at the ownership table.’
The government said it secured the Ologbo equity by leveraging land and providing security and an enabling environment for the investment.
The 100MW plant is being developed by CCETC Ogua Energy Limited in Ologbo, Ikpoba-Okha Local Government Area.
The state also has a 10 per cent stake in the proposed 200MW Edo North Independent Power Project being developed by Edo North Electricity Company Limited.
Commissioner for Power, Paul Usenbo, had said the project would improve electricity supply across Edo North and complement supply from the national grid.
Turning to the Obaseki administration, Mayaki said the controversies surrounding Radisson Blu and MOWAA illustrated the need for governments to clearly establish what taxpayers receive when public resources and assets are committed to major projects.
He said the Radisson transaction raised questions about the scale of the state’s financial exposure relative to the ownership interest ultimately retained by Edo.
The Okpebholo administration has said the state continues to service financial obligations associated with a N25 billion capital-market facility connected with the hotel project.
Mayaki said MOWAA presented a different concern because public resources and land were committed to the cultural project without the state holding equity in the independent institution.
Supporters of MOWAA have argued that the institution is a charitable, non-profit organisation rather than a conventional commercial enterprise and that the state’s contribution should therefore be viewed as support for cultural and public infrastructure rather than an equity investment.
Mayaki said the power projects could have implications beyond the value of the state’s shares.
According to him, improved electricity supply could lower operating costs for businesses, encourage manufacturing and agro-processing, support small and medium-sized enterprises and strengthen Edo’s attractiveness to investors.
He said reliable power could also stimulate industrial development around the Ologbo axis and expand economic opportunities across Edo North.
Mayaki said the ultimate measure of the projects would be their completion, electricity delivered to homes and businesses, jobs created and the economic value generated for the state.
‘Edo should not just be the place where investments are located,’ he said.
‘Edo should benefit from the wealth those investments create.’