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Kwara Government Allocates ₦6.5 Billion for Hotel Renovations in Just Three Months

Published by on October 11th, 2024.


Kwara Government Allocates ₦6.5 Billion for Hotel Renovations in Just Three Months

The Kwara State Government has come under scrutiny for investing ₦6.5 billion in the renovation of Kwara Hotels within the first quarter of the year, as reported in the state’s budget performance document. This amount represents a significant portion of the project’s total budget of ₦8.5 billion, with 76% of the funds already spent.

 

Critics have raised concerns over the project’s hefty price tag, arguing that it reflects a misallocation of resources given the pressing economic conditions. The opposition party, the Peoples Democratic Party (PDP), has urged the government to halt the renovations, demanding greater transparency regarding the expenditure.

 

Recent developments have intensified the controversy, including the demolition of Crystal Mall, linked to All Progressives Congress chieftain Hon. Mashood Mustapha, which resulted in the resignation of Bar. Akeem Usman Mustapha (SAN), who had been the chairman of the State Education Trust Fund. This fallout is believed to be tied to ongoing political tensions and a disputed contract concerning the hotel renovations.

 

In December 2023, Hon. Salahudeen Lukman, a chairmanship candidate in Offa Local Government Area, accused the government of financial misconduct related to the renovations. He pointed out that the budget allocated ₦71.2 million per room for the project, labeling it as corrupt.

 

Analysis of expenditures shows that while ₦6.5 billion was earmarked for the hotel renovations in three months, the healthcare ministry’s total capital expenditure for the first half of 2024 was ₦5.4 billion, and tertiary education received only ₦1.538 billion. In stark contrast, the water resources ministry was allocated a mere ₦102.1 million for capital projects.

 

Over the first six months, the state spent ₦16.9 billion on the Ministry of Works, making the hotel renovation costs equivalent to 38.4% of that total. Alarmingly, only ₦42 million was directed towards water facilities, and no funds were reported for the development of hospitals or health centers during the same period.

 

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