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The Benue Investment and Property Company Limited (BIPIC) has initiated steps to take over the Sheraton Hotel Makurdi and the Lobi Cassava Processing Factory from their current lessee, King Di Nig Ltd, following revelations of serious irregularities in the lease agreements and prolonged underutilization of both facilities.
The Group Managing Director of BIPIC, Dr. Raymond Asemakakaha, disclosed these developments while appearing before a judicial panel of inquiry set up by the Benue State House of Assembly and chaired by retired Justice S. O. Itodo. The panel is investigating the lease arrangements with the aim of recovering the properties for the state.
Dr. Asemakakaha told the panel that the Benue State Government, through BIPIC, holds the majority shares in the Sheraton Hotel. He described it as intriguing and irregular that BIPIC the majority shareholder was not consulted before the lease agreement was executed. He further stated that no board resolution exists showing BIPIC’s approval of the lease, a clear violation of corporate governance best practices.
The BIPIC boss requested that the Executive Council approval purportedly authorizing the lease be produced for verification. He also revealed that a forensic audit uncovered troubling details, including the complete absence of the hotel’s file, which remains missing and unaccounted for.
A site visit to the facilities, according to Dr. Asemakakaha, confirmed that the lessee lacks the technical expertise and financial capacity to revamp the rundown hotel or optimize its revenue potential. He described the continued degradation of the hotel and cassava plant as purely an economic issue, noting that the state is losing substantial income including tax revenues while missing opportunities to create jobs for the unemployed.
He emphasized that Benue has repeatedly lost the chance to host major national and international events due to the absence of functional five-star conference facilities, despite possessing a property that, if modernized, could serve that purpose. “It is unacceptable and something has to be done urgently to arrest this ugly situation,” he said.
On the Lobi Cassava Processing Factory, Dr. Asemakakaha disclosed that the facility has remained moribund and non-operational since 2010, describing the situation as economic sabotage. He pointed out that from 2010 to date, the lessee has failed to pay significant taxes or generate new employment, yet has retained control of the assets.
The representative of King Di Nig Ltd, John Amali, appearing before the same panel, acknowledged that the hotel is underutilized. He attributed the poor performance to liability issues, alleged interference from the previous administration, and encroachment on parts of the premises by unidentified individuals, which he said prevented optimal operations.
Lawmakers from the 10th Benue State House of Assembly present at the session expressed deep concern over the underutilization of the hotel and called for urgent measures to recover and reposition the facility for the benefit of the state.
In his closing remarks, Justice Itodo urged all parties to treat the inquiry as a platform for constructive dialogue, explore practical solutions, resolve any lease infringements, and maximize the economic potential of the properties for the people of Benue.
The developments signal a determined push by the current administration to restore proper management structures, halt revenue losses, and unlock the full value of key state assets that have remained dormant for over a decade.
