Governor Hyacinth Alia of Benue State has launched efforts to recover a once-lucrative state-owned hotel that is currently under an alleged ‘fraudulent’ lease arrangement.
The government announced it has also taken steps to resuscitate a dormant cassava processing plant – the Lobi Cassava Processing Factory, which has fallen into disrepair/ruins and not been functioning as intended for some years.
NewsQuest reports that the Sheraton hotel is a well-known hotel located in Makurdi, the State capital overlooking the River Benue.
In 2010, the hotel was leased to King-D Nigeria Limited for 30 years, with the Benue State Government retaining 5 percent of the shares.
Our correspondent gathered that the Benue State House of Assembly recently directed committees to engage with the management (King-D Nigeria Limited) to revive operations, confirming government oversight.
Both the Benue Investment and Property Company Limited (BIPC) and the State Lawmakers opened an inquiry into the lease of the property to take over the ownership from the lessee, insisting that the State was losing huge revenues as a result of poor performance of the hotel.
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Technical Adviser on Media, Publicity, and Strategic Communication to the Benue State Governor Solomon Iorpev in a statement on Saturday said the fresh move by the government is to bolster the State’s economy and create jobs.
“The Benue Investment and Property Company Limited (BIPC) has initiated an inquiry into the lease of the Sheraton Hotel, Makurdi, and is reviewing the agreement with the current lessee, King Di Nig Ltd. The move aims to reposition the facility to deliver maximum economic value to the state.
“A forensic audit revealed serious irregularities surrounding the management and utilization of the Sheraton Hotel and the Lobi Cassava Processing Factory leading to loss of significant revenue due to poor performance and lack of functional facilities,” Iorpev said.
The audit is also examining the nearby Lobi Cassava Processing Plant, which has sat idle, contributing to substantial revenue losses from underperformance and neglected facilities.
Governor Alia has directed the BIPC to revive the cassava plant and install proper oversight at both sites.
The moves are expected to generate income and employment in a state where agriculture dominates but infrastructure continues to lag.
A judicial panel, led by retired Justice S. O. Itodo, is overseeing the hotel inquiry, which remains underway.
For the Sharaton hotel specifically, there are concerns that it was intriguing that BIPC, the majority shareholder of the property was not consulted before the lease agreement was signed.
Reports also indicate that there was never a board resolution showing that BIPC, the majority shareholder signed on the lease, which is against corporate governance best practices.
The lease also remains without the approval of the State Executive Council as claimed by officials.
