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By Benson Michael
Industry expert says rising operating costs, poor infrastructure, and economic volatility are putting mounting pressure on Nigeria’s $1.6 billion hospitality sector, threatening its growth prospects and long-term viability.
Temitope Akindele, Business Support Manager at Swiss International Hotel VGC Lekki, said the sector comprising hotels, restaurants, event centres and tourism services has expanded rapidly in recent years, buoyed by the country’s large population and vibrant social culture. But despite its projected revenue of $1.67 billion by 2025, operators are struggling to stay afloat.
“The biggest challenges remain high energy costs and a shortage of skilled staff,” Akindele said in an interview. “These issues are particularly severe for small and medium-sized businesses trying to compete in a tough economic climate.”
Akindele, who joined the hospitality industry six years ago after a career in retail banking, said inflation, currency instability, and unpredictable government policies have compounded the sector’s difficulties. Poor road access to hospitality properties, unreliable water supply and inadequate waste management, especially outside mid-sized cities—are also discouraging guests and investors.
“The lack of clear regulatory frameworks is a major concern,” he said. “It not only deters foreign investment but also makes compliance more difficult for local operators.
To mitigate these challenges, Akindele urged business owners to adopt cost-saving technologies such as solar power and energy-efficient appliances to reduce diesel consumption.
He also recommended partnerships with hospitality schools and NGOs to improve staff training and technical competence, while fostering a culture of continuous learning and certification.
Industry associations, including the Hospitality and Tourism Management Association of Nigeria (HATMAN), Nigerian Hotel and Catering Institute (NHCI), Hotel Managers Conference Africa (HMCA), and the Federation of Tourism Associations of Nigeria (FTAN), should unify their advocacy efforts, Akindele said, pushing for clearer policies and tax relief from government.
He added that hospitality managers must innovate to remain competitive, while national security agencies should strengthen safety measures to attract international tourists.
Despite the headwinds, Akindele remains optimistic. “With proper planning, innovation and collaboration between stakeholders and government, the sector can not only survive but thrive,” he said. “It will take resilience and adaptability, but hospitality remains a vital pillar of Nigeria’s economy and cultural identity.”
