Review of Kwara hotel contract cost unavoidable, says Afolayan

The President and Chairman of the Council at the Chartered Institute of Project Managers of Nigeria (CIPMN), Chief Bode Afolayan, has emphasized that a review of the contract cost for the ongoing rehabilitation of Kwara Hotel in Ilorin is unavoidable. He attributed this necessity to the steep rise in building material prices over the last two to three years, which have surged by approximately 400%.

Speaking in Ilorin over the weekend, Afolayan, who is also a former President of the Real Estate Developers Association of Nigeria (REDAN), addressed journalists on the matter. His remarks followed concerns raised by an Ilorin-based anti-corruption group, the Elites Network for Sustainable Development (ENetSuD). The group had alleged that the state government planned to allocate an additional N10 billion for the hotel’s rehabilitation in 2025, following an expenditure of N13 billion in 2024.

Afolayan explained that the significant cost increase was a direct result of economic factors, particularly the depreciation of the naira.

“If you examine the situation closely, you will agree that in the past two to three years, costs have surged dramatically. The exchange rate, which stood at around 540 naira per dollar a few years ago, has now exceeded 1,600 naira. This alone accounts for a substantial rise in the prices of imported construction materials,” he stated.

He illustrated the inflationary impact on construction, recalling that a three-bedroom bungalow in one of his estates in Kwara used to sell for N4 million, whereas today, the cost of roofing alone is the same amount.

Afolayan further stressed the importance of considering the quality and scope of work required before making conclusions about project expenses.

“It is unfair to throw around figures without understanding the extent of work needed. One must factor in the infrastructure and finishing standards expected for a project of this magnitude,” he said.

He also criticized ENetSuD’s allegations, arguing that the group’s claims lacked an informed assessment of the project’s requirements.

“The organization should not mislead the public on a matter they do not fully understand. Instead of making unfounded accusations, stakeholders should visit the site and assess the scale of work involved before forming opinions,” he cautioned.

Afolayan also highlighted the challenges of executing high-quality infrastructure projects, noting that constructing a one-kilometer road alone costs around N4 billion.

He urged journalists and civil organizations to focus on objective reporting rather than sensationalism or political bias, emphasizing the need for factual and balanced discourse on public projects.