Sheraton Hotel, Abuja
The high rate of inflation in Nigeria is having a severe impact on the hotel industry, with many hotels being forced to shut down operations. Industry operators are sounding the alarm and calling on the government to step in and help address the rising costs of doing business.
In interviews with The PUNCH, hoteliers expressed their frustrations, backed by alarming statistics from the National Bureau of Statistics. Recent figures revealed that inflation in the restaurant and hotel sector contributed 0.40 percent to Nigeria’s overall inflation rate, which surged to 32.70 percent in September.
Dr. Patrick Anyanwu, President of the Nigeria Hotel Association, described the situation as “unbearable.” He explained that the challenges facing hotel operators began back in 2020 but have intensified under the current administration. “You go to buy fuel; formerly, you could manage fuel at N800 per litre, but now it has gone up to N1,200 per litre,” Anyanwu said. He added that many hotel owners are struggling to attract customers due to the high costs of fuel and energy. “If someone feels that the diesel they bought at over N20,000 only gets them a handful of customers, are they not going to close up?” he asked.
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The ongoing energy crisis has exacerbated the situation for hotels. Anyanwu noted that hoteliers are dealing with high electricity costs compounded by erratic power supply from distribution companies. He stated, “We are not receiving sufficient electricity. The amount the Discos (power distribution companies) are sending to our members, when you assess it against the type of bills they are bringing, you will ask yourself, ‘when did you consume this?’”
Anyanwu urged the government to take immediate action to support the struggling hospitality sector. “We are still advising those in government to consider the masses. We are the ones that brought them in. We asked them to go there and represent us,” he emphasized.
Gbenga Sumonu, President of the Nigeria Hotel and Catering Institute, echoed these concerns, describing the current state of the hospitality industry as grim. He stated, “The economy has greatly been unstable with the hyperinflation we are facing as investors today. This situation has affected all facets of operation, from high-interest rates and rising material costs to exorbitant energy expenses.”