The Nigeria Hotel Association (NHA) has warned that it would soon begin shutting down unregistered hotels in the country, citing concerns over insecurity. The association’s president, Eze Anyanwu, said this while addressing journalists during a meeting of its national executive and state chairmen in Owerri, the Imo State capital. The traditional ruler said the unruly activities of criminals who lodge in unregistered hotels was a major contributor to insecurity in the country.
He called on all hotel owners to identify with the NHA or risk shutdown through the use of legal force, describing the hospitality industry as “one of the most important drivers of economic growth in Nigeria”. “In the near future, hotels that refuse to register with the NHA will face penalties and may risk being shut down as part of efforts to sanitise the industry,” he warned. “We cannot continue to allow any hotel that is not registered to operate and damage the reputation of our association because they use such facilities to commit crime that affects the nation in general”.
He further urged the government at all levels to provide interventions such as grants or bailout funds to support the association and its members nationwide. He commended the federal government and the Imo State Government for their efforts at promoting tourism and creating an enabling environment for the growth of the hospitality sector. He, however, decried the multiple taxation of hoteliers across Nigeria and called for caution, urging various state governments to work cooperatively with hoteliers in their domains.
“In consideration of our huge contribution to employment, revenue generation, accommodation of government visitors from all over the world and national development, it is only fair that the government supports us,” he said. He also expressed concern over the recent action of the National Institute of Hospitality and Tourism (NIHOTOUR), stating that the implementation of the NIHOTOUR Act 2022 was seriously affecting the hospitality industry. “This is against the constitution of the Federal Republic of Nigeria that put tourism services under a residual list and has to stop, as we will not allow any agency or group to harass or intimidate our members,” he said.
From an economic perspective, the hospitality industry is a significant contributor to employment and revenue generation in Nigeria. Unregistered hotels not only evade taxes but also pose security risks that can deter investment in tourism and related sectors. The NHA’s threat to shut down unregistered hotels highlights the tension between industry self-regulation and government oversight. While the association’s concerns about multiple taxation and the NIHOTOUR Act are valid, the broader challenge lies in creating a regulatory framework that encourages formalisation without stifling small businesses. The government’s response to these concerns will shape the future of Nigeria’s hospitality sector and its contribution to economic growth.
