Inflation Forces Nigerian Hotels to Shut Down as Operators Cry for Government Intervention
The escalating inflation rate in Nigeria is severely impacting the hospitality industry, forcing some hotels to shut down operations due to unsustainable operating costs, industry stakeholders have revealed.
In interviews with The PUNCH, leaders in the hospitality sector called on the federal government to urgently address the economic conditions crippling their businesses.
Their concerns come in the wake of new data from the National Bureau of Statistics, which shows that the restaurants and hotels division contributed 0.40% to Nigeria’s headline inflation rate—now at a staggering 32.70% as of September.
‘Unbearable Situation’—Hotel Operators Sound Alarm
Dr. Patrick Anyanwu, President of the Nigeria Hotel Association, described the current state of the industry as “unbearable,” citing surging energy costs and unreliable power supply as primary challenges.
“You go to buy fuel, formerly you could manage at N800/litre, but now it has gone up to N1,200/litre. Members are complaining about energy. Many have started closing their establishments,” Anyanwu said.
He lamented that hotels now spend over N20,000 on diesel daily, often without enough customer turnout to justify the expense.
Compounding the issue, hoteliers say electricity bills from distribution companies are exorbitant and poorly reflect actual consumption due to erratic power supply.
“We are not receiving sufficient electricity,” Anyanwu said. “When you assess the bills the Discos are sending against the power supplied, you will ask yourself, ‘when did we consume this?’”
Call for Government Support
Anyanwu urged the government to urgently intervene. “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 added.
Gbenga Sumonu, President of the Nigeria Hotel and Catering Institute, echoed the concerns, saying the industry is reeling from multiple economic pressures.
“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,” Sumonu said.
The worsening business environment is threatening not only the survival of hospitality establishments but also the livelihoods of thousands of Nigerians employed in the sector.
Industry experts warn that without immediate intervention, the country could see a significant contraction in its hospitality sector—an industry critical to tourism, employment, and economic growth.
