Nigeria’s Soaring Inflation Forces Hotels To Close As Operators Call For Urgent Government Action

Nigeria’s Soaring Inflation Forces Hotels To Close As Operators Call For Urgent Government Action

Nigeria’s soaring inflation is severely impacting the hospitality industry, leading many hotels to shut down operations, industry representatives have reported.

Hotel operators are urging government intervention to tackle the rising costs associated with running their businesses.…….CONTINUE READING 

The stakeholders highlighted that recent data from the National Bureau of Statistics indicates that inflation in the restaurant and hotel sector accounted for 0.40 percent of Nigeria’s overall inflation rate, which surged to 32.70 percent in September.

The hospitality sector is particularly affected by skyrocketing fuel prices and inconsistent electricity supply. Dr. Patrick Anyanwu, President of the Nigeria Hotel Association, characterized the situation as “unbearable.”

He explained that challenges for hoteliers date back to 2020 but have worsened under the current administration.

“You used to manage fuel at N800 per litre, but now it’s shot up to N1,200. Many members are complaining about energy costs. Some have begun to close their establishments. If someone spends over N20,000 on diesel and only attracts a handful of customers, what choice do they have but to shut down?”

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Anyanwu pointed out that high electricity costs, compounded by unreliable service from distribution companies, lead to inflated bills for hotel operators.

“We are not receiving adequate electricity. The amount that Discos (power distribution companies) provide doesn’t match the bills they issue,” he stated.

He called for immediate government action, emphasizing, “We continue to urge those in power to consider the needs of the people. We put them there to represent us.”

Similarly, Gbenga Sumonu, President of the Nigeria Hotel and Catering Institute, painted a grim picture of the hospitality landscape.

“The economy is incredibly unstable due to the hyperinflation we’re experiencing as investors. This has affected every aspect of our operations, from soaring interest rates and material costs to exorbitant energy expenses,” he added.