BIPC Battles to Save Benue Hotel from Sale

…State Moves to Recover Property, Offers Four-Point Deal to NEXIM Bank

By Queen Kunde

The Benue Investment and Property Company Limited (BIPC) has moved to stop the Nigerian Export-Import Bank (NEXIM Bank) from selling Benue Hotels Limited, opening fresh talks with the bank over the ownership and outstanding loan tied to the property.

The Group Managing Director of BIPC, Dr. Raymond Asemakaha, CFA, led the engagement with NEXIM Bank, where he raised concerns over the circumstances surrounding the lease of the hotel to Luxurium Leisure Services in 2012.

Following the lease, Luxurium obtained two loan facilities from NEXIM Bank—488 million naira and another 630 million naira—for the remodelling and development of the hotel.

But Asemakaha questioned the legality of the transaction, alleging that the lease and subsequent issuance of a Certificate of Occupancy to Luxurium were carried out without the required approvals.

He described the process as “administrative fraud,” saying there was neither Executive Council approval nor a board resolution authorising the transaction.

According to him, the Benue State Government, through BIPC, owns 75 per cent of the property, while Nigerian Hotels Limited holds the remaining 25 per cent.

Asemakaha further alleged that NEXIM Bank failed to conduct adequate due diligence before granting the loans, claiming that the bank did not obtain owners’ signatures, necessary approvals, board resolutions and a search report on the collateral.

The BIPC boss said the state government would not stand by and allow the hotel to be sold, stressing that government properties must be protected for the benefit of the people.

To resolve the matter, Asemakaha presented a four-point proposal to NEXIM Bank on behalf of the state government.

The proposals include the recovery of the hotel before the expiration of the lease next year and an offer for the state to pay 48 per cent of the loan to NEXIM Bank as part of the process of recovering the property.

He also proposed a 50:50 sharing of the risk associated with the outstanding facility, arguing that both parties should bear losses arising from the transaction.

BIPC also raised questions about how the funds borrowed by Luxurium were spent.

Asemakaha said the company would investigate the utilisation of the loan facilities, noting that information provided by the manager of Luxurium suggested that only a facility and a swimming pool were added to the hotel, while much of the remaining work consisted of minor renovations.

He reiterated the commitment of the administration of Governor Hyacinth Alia to recover government properties and warned individuals and organisations holding state assets to make them available for the benefit of Benue.

Responding, NEXIM Bank’s Chief Risk and Compliance Officer, Umoru Gubio, said the bank would carefully study the proposals presented by the Benue State Government before communicating its position.

The meeting was attended by former Speaker of the Benue State House of Assembly, Rt. Hon. David Iorhemba, who was appointed receiver in respect of the hotel, as well as senior management officials of BIPC and NEXIM Bank.