Why Stakeholders Endorsed Upgrade Of Kwara Hotels With N17bn

Date: 2024-02-01

It’s no news that there are divergent views about the Kwara State government’s plan to upgrade Kwara Hotels to a befitting standards.

However, stakeholders in the affairs of the State, including students, pro-democracy and pressure groups have have endorsed the state government’s plan to upgrade the facility to a five-star status.

The groups that have made public their support for the planned rehabilitation of Kwara Hotels are a leading pro-democracy group – Kwara Must Change, a pressure group – Alliance for Sustainable Kwara ( ASK) and some students of tertiary institutions who participated in an online debate organised by Kwara Must Change on the desirability or otherwise of spending N17bn on the upgrade of the facility.

The Kwara Must Change had in a scientific approach introduced a week-long competition amongst students of tertiary institutions on the issue.

The group had invited students across tertiary institutions in the country to solve a governance equation on the ongoing upgrade of of the hotel.

The upgrade of the hotel has generated heated exchanges in the state amongst various interest groups.

In a post on its Facebook page, Kwara Must Change raised multiple questions for mathematical determination and said any student that could provide the correct answer will be rewarded with N50,000.

It noted that, governance debate should not be left for few politicians and public personalities who might have their own agenda, adding that,” it should involve all concerned stakeholders, especially the students, which we believe can make better judgement on governance issues if given the right information.”

Providing background to the question, Kwara Must Change explained that, six years ago, Akwa Ibom State government built a 143 rooms 3- star hotel in Uyo for N25bn, adding that in Oyo State, 87 rooms Premier hotel is being upgraded for N20bn .

” If 172 rooms Kwara Hotel is valued at N5.4bn two years ago and the hotel is to be upgraded to 5- star with N17.8bn in 2024, considering the 29% inflation rate in Nigeria today, students determine if the proposed cost of upgrading Kwara Hotel to 5- star Hotel is expensive or cheap”.

The group also asked the students to determine what the valuation of Kwara Hotels would be after the it is fully upgraded in 2025.

In its second question, Kwara Must Change said, when 20% averagely rated Kwara Hotel is functional, it generates N50 million per month and N600million per year. If upgraded to 5 – star and the hotel is functional at its 100% capacity, how long will it take the hotel to generate the N17.8billion used in upgrading it?

After an exciting debate by some students on the issue, the organiser shortlisted entries by four students in its mathematical competition to determine the justifiability of remodeling Kwara Hotel and upgrading it to s five- star facility at the rate of N17bn.

In multiple releases over the weekend on its social media page, Kwara Must Change shortlisted four entries with detailed solution to the mathematical equation.

Announcing the result, the group said, entries by the following students have been shortlisted for consideration in Kwara Hotel Mathematical Competition, namely Ibrahim Abdulazeez from Moddibo Adam University of Technology, Yola, Elijah Oyedele Ainiku from University of Ilorin, Ibrahim Qosim Olamide from University of Ilorin and Salaudeen Ayodeji Faruk from University of Ilorin.

It said each of the students presented a detailed solution to the mathematical equation, using different methodology.

In the submission of Ibrahim Abdulazeez, a student of Surveying and GeoInformatics at the Moddibo Adam University of Technology Yola, he said that, based on evidence derived from solution to the equation, the negotiating ability of Kwara State government can be described as efficient.

According to him, Kwara State government is able to upgrade a 172 rooms hotel to 5 star Hotel for N17.8billion, which appears to be more efficient use of funds compared to others who did smaller projects with more funds”.

Another student, Elijah Oyedele Ainiku, a Physics student from the University of Ilorin also agreed with Ibrahim Abdulazeez in his submission.

He concluded that, the proposed cost of upgrading Kwara Hotel is cheap, when compared to other listed examples such as Akwa Ibom and Premier Hotel.

In another entry, a student from University of Ilorin, Ibrahim Qosim stated that, the calculation showed that the adjusted cost of upgrading Kwara Hotel is higher than the proposed cost and we can say that the proposed cost is relatively cheap.

Salaudeen Faruk, a student from University of Ilorin who adopted a different approach to the equation stated that, the cost per room of Kwara Hotel is cheaper, when compared to other hotels across the country and this means that the cost of the upgrade is very reasonable and worth it and it can be described as good investment.

Also, a pressure group, Alliance For Sustainable Kwara (ASK) has cautioned politicians in the state against overheating the polity over the planned upgrade of Kwara Hotels.

The group in a statement signed by its spokesman, Hon. Kale Oloje, said the appeal becomes necessary because of the ongoing heated debate about the desirability of converting Kwara Hotels to a five- star status.

The ASK expressed disappointment in the conduct of some politicians in the state since the news of the state government’s plan to spend N17bn on the remodeling of the facility to meet acceptable international standard was broken.

It noted that the politicians across party lines should be more concerned about the development of the state they claimed to love by shunning sentimental approach to issue of governance.

” We have watch with keen interest the debate on the planned remodeling of Kwara Hotels to a five- star status. But, we are disappointed by the comments emanating from some politicians who are aspiring to rule the state because such inflammatory statements are capable of overheating the polity. The 2027 election is still far away and we expect statesmen, politicians inclusive to give room for governance of the state so that there can be development.

” In our own view, we see the planned remodeling of Kwara Hotels as applausive and a right step in the right direction. Whatever the government spends on the project now will have a multiplier effect on the state’s economy giving the location of Ilorin, the state capital as gateway between the north and south as well as peaceful nature of the city.

” The Adewole Housing Estate, Ilorin and Ilorin Stadium Complex today remain the pride of all Kwarans. We noted that there were opposition to the execution of the projects, especially the Ilorin stadium complex at that time . If the government of the then military governor, late Major General George Innih had caved in to the criticisms from some quarters then, we might not have the Ilorin stadium complex which now attracts sports personalities and sporting events to the state,” ASK stated.

The group, therefore, expressed its support for the remodeling of Kwara Hotels, saying that its development- driven.

It praised the state governor, AbdulRahman AbdulRazaq for his foresight.

It, however, urged the contractor handling the project to deliver a good job and accoding to specifications, while advising the concerned government agency to ensure proper monitoring of the projects and ensure that standard is not compromised.

The chief press secretary to Governor AbdulRazaq, Rafiu Ajakaye, described the state government’s plan as “a bold attempt to remodel and rebuild the 172-room Kwara hotel in the most comprehensive way ever since it was built in 1975 by the Brig-Gen David Bamigboye regime.”

Ajakaye also clarified that there are no two contracts on the project, adding that,”while the state executive council did indeed approve a concessioning to Crystal, the approval was glaringly conditional upon the House of Assembly backing it. No legislative approval was communicated for the concession; hence, no contract was sealed. This is confirmed by the June 2, 2022 document of Harmony Holdings sent to the Crystal in the wake of the conditional approval by the council.

“Besides, the Crystal’s N3bn arrangement was never a wholesale remodelling and renovation of the Kwara Hotel. It was a piecemeal, wing-by-wing, or incremental renovation deal, which then allows Crystal to also manage it for 15 years. The comparison of a piecemeal renovation with complete remodelling, upgrades, and reconstruction that replaces everything in the hotel, except the carcass, is far-fetched. No basis for it. ”

On the argument about due process and transparency, Ajakaye said the government twice advertised the job with all the requirements: first on August 18, 2023; and, again, on October 18, 2023, both in the printed versions of a local and a national newspapers .

” Three firms applied and went through a competitive process, and one, Craneburg, was picked based on its capacity to fund and execute the huge project. Crystal did not apply. The government has a job to do, and it is its responsibility to ensure that only a firm deemed competent and financially viable is picked. In this job, the contractor brings the money — to be repaid in a structured way over a period of time. This saves everyone the burden of slow job delivery or perennial demand for variation where government directly funds a project.

“Why didn’t this one go through the House like the botched process involving Crystal? That is because no concession is involved. All the contractor does is to rebuild and furnish Kwara Hotel to required five-star specifications and hand it over to the state for further decisions on its management.

“With an increasingly busy airport and major tourism sites and potentials, a state as strategically positioned as Kwara should not be without first-class hospitality facilities. Having none stunts its socioeconomic growth and limits its potentials to host not just important events but to also harvest the opportunities that come with them,” he concluded.

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