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By Chukwuma Umeorah
The Federal High Court in Lagos has barred the National Institute for Hospitality and Tourism (NIHOTOUR) from enforcing certain regulatory provisions against hotel operators in Lagos State, awarded N10 million in damages against the institute and ordered it to refund payments collected from members of the Hotel Owners and Managers Association of Lagos (HOMAL).
The judgment, delivered on October 15, 2026, followed a suit filed by HOMAL against NIHOTOUR over the constitutionality of provisions of the National Institute for Hospitality and Tourism (Establishment) Act, 2022, relating to the registration and certification of hospitality workers, manpower standards and the regulation of hotel businesses operating within Lagos State.
Announcing the judgment at a press conference in Lagos on Monday, HOMAL President, Chief S. O. Alabi, said the ruling protected members of the association from what he described as the institute’s enforcement activities and established the limits of its regulatory powers over their businesses.
According to the him, the court declared that provisions of the NIHOTOUR Act relating to the standardisation, registration and certification of manpower requirements in the hospitality and tourism sectors, as well as the prescription of minimum manpower standards for businesses operating wholly within Lagos State, were “illegal, ultra vires and unconstitutional.”
The court also held that the Lagos State Hotels Licensing Authority Law, 2010, regulates tourism within the state and that NIHOTOUR lacked the constitutional power to regulate or revoke operating licences issued to the affected businesses by the Lagos State Government.
It further declared that regulations and enforcement actions undertaken by NIHOTOUR against HOMAL members in Lagos State under the disputed provisions of the 2022 Act were “unconstitutional, illegal, null and void.” The judgment also granted a perpetual injunction restraining NIHOTOUR and its agents from carrying out forceful enforcement, arrest, detention and collection of money or fees from the affected operators pursuant to the disputed provisions of the Act.
Alabi said the court ordered the institute to refund payments made by HOMAL members in connection with its enforcement activities and awarded N10 million in damages against it in favour of the association.
“With this judgement, our members are protected from the physical and revenue onslaught of NIHOTOUR,” he said.
He, however, acknowledged that the defendants retained the right to appeal, adding that the judgment would determine the relationship between the association’s members and the institute unless set aside by a higher court.
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The dispute followed NIHOTOUR’s attempts to enforce provisions of its enabling law requiring the registration and certification of hospitality personnel and the application of manpower standards to hotels and other businesses in the sector.
HOMAL said the association had opposed those provisions since the bill that led to the enactment of the law was considered by the National Assembly in 2017, arguing that some of the proposed powers encroached on the constitutional responsibilities of state governments and other federal agencies.
According to Alabi, stakeholders raised objections at a public hearing in the House of Representatives in 2017, but provisions they considered contentious were retained when the legislation was enacted in 2022. He added that the association did not oppose the establishment of NIHOTOUR as a federal training institution but challenged its authority to regulate businesses and certify their employees in areas it considered outside the institute’s constitutional mandate.
“We are not against government setting up NIHOTOUR. It ought to have been done for years. The area we have issue with is the area that we want to certify utensils in the court,” he added, referring to the certification and registration of personnel in the hospitality sector. He further questioned the institute’s demand for the registration and vetting of hotel executives and other employees, arguing that the requirements went beyond the professional training mandate of the institution.
The association’s opposition intensified after the appointment of the current NIHOTOUR Director-General in late 2024, when, according to HOMAL, the institute began enforcing provisions that had previously not been implemented. HOMAL said it formally objected to the demands in a letter dated March 10, 2026, but NIHOTOUR did not respond to the association’s concerns.
The association subsequently instituted Suit No. FHC/L/CS/906/2025 at the Federal High Court in May 2026, seeking relief against the institute’s enforcement activities.
Alabi alleged that NIHOTOUR continued its enforcement actions despite the pending case, leading to the closure of some member hotels. “Many of our members’ premises were invaded and closed, their businesses were only re-opened after payment of N2.5 million to company called ‘NIHOTOUR Training, Research and Consultancy’”. The association further accused NIHOTOUR of attempting to have its registration certificate withdrawn by the Corporate Affairs Commission (CAC) and of writing to the Economic and Financial Crimes Commission (EFCC) over allegations that HOMAL was diverting revenue intended for the Federal Government.
Beyond the Lagos case, HOMAL said it was defending the interests of six members who had been served with court papers in a separate case initiated by NIHOTOUR against 16 hotels in Abuja. Alabi also clarified that the judgment was not a rejection of efforts to improve standards in the hospitality industry, but a challenge to the legal basis of the institute’s regulatory activities.
“All our members are private individuals and corporations who had invested their hard earned resources in the development of the industry. Expectedly, they are always at the forefront of improving the physical and operating standards of their business,” the statement said.
He affirmed that the association would defend the judgment if NIHOTOUR or any other defendant challenged it on appeal. “Our Association is ready to defend any appeal action taken, we assure our members to continue to run their business without fear of molestation from NIHOTOUR or any other Federal Government Agencies,” HOMAL said.
