Olugbenga Sunday Demands Policy Overhaul to Unlock Nigeria's Hospitality Potential

July 8, 2026 4 min read

Olugbenga Sunday, a vocal advocate for Nigeria's hospitality sector, has called for immediate policy reforms that he says could transform the country into a leading destination for business and leisure travellers. Speaking at a stakeholders' forum in Lagos, Sunday warned that without decisive government action, Nigeria risks falling further behind regional competitors in capturing tourism revenue.

A Sector Stuck in Neutral

Nigeria's hospitality industry has long struggled to reach its potential despite the country's vast population and growing middle class. Hotel occupancy rates across major cities hover below 45 percent during non-peak periods, according to industry data, while neighbouring Ghana and Kenya continue to attract larger shares of international visitors. Sunday argues that regulatory bottlenecks and inconsistent government policies lie at the heart of the problem.

The sector contributes less than 3 percent to Nigeria's gross domestic product, a figure advocates say could triple with the right environment. Hospitality Potential Nigeria, the organisation Sunday represents, has been pushing for streamlined business registration processes and tax incentives that would encourage investment in hotels, resorts, and conference facilities.

What Is Holding Nigeria Back

Three interconnected issues dominate the discussion among hospitality professionals in Nigeria: infrastructure deficits, bureaucratic delays, and an unpredictable regulatory environment. Foreign investors regularly cite visa-on-arrival inconsistencies and unclear property ownership laws as major deterrents. Local entrepreneurs face their own challenges, including high lending rates that make capital-intensive projects prohibitively expensive.

Sunday pointed specifically to the gap between stated government support and actual implementation. "We have heard promises of special economic zones for tourism. We have heard about expedited permits. But the experience on the ground tells a different story," he told delegates at the Lagos event. The Hospitality Potential Nigeria leader called for concrete timelines and measurable targets rather than broad declarations.

Infrastructure and Access

Road connectivity between airports, city centres, and tourist destinations remains poor in many parts of Nigeria. Airport terminals in secondary cities lack basic amenities that international travellers expect, and domestic flight options remain limited. These gaps extend hotel booking windows and reduce the attractiveness of multi-city itineraries that would spread tourism wealth beyond Lagos and Abuja.

Power supply presents another persistent challenge. Hotels must run private generators for most of the day, driving up operating costs that ultimately get passed to guests. Sunday argues that solving the electricity problem would immediately improve the sector's competitiveness.

The Regional Competition

Nigeria's underperformance stands out when compared with other African nations. Rwanda's deliberate push into meetings and conference tourism has generated significant foreign exchange and created skilled jobs in Kigali. Morocco's investment in luxury resorts along its Atlantic coast has established the kingdom as a premier destination for European tourists seeking sun and culture.

Nigeria possesses comparable assets — diverse landscapes, rich cultural heritage, a vibrant music and film industry that draws African diaspora visitors — but has failed to package them effectively. Sunday emphasises that policy coherence across multiple ministries is essential: tourism, transportation, culture, and finance must work in coordination rather than operating in silos.

What Better Policies Would Require

Hospitality Potential Nigeria has drafted a policy wishlist that includes accelerated business registration timelines, import duty exemptions for hotel equipment, and a dedicated tourism development fund. The organisation also wants clearer guidelines on foreign ownership of hospitality properties, a contentious issue where conflicting regulations have spooked potential investors.

Sunday stressed that tax holidays for new hospitality investments could stimulate construction activity within two to three years. He pointed to successful models in the United Arab Emirates, where governments offered initial tax benefits to attract hotel chains that subsequently drove broader economic growth through employment and ancillary services.

Government Response So Far

The Ministry of Tourism and Culture has acknowledged the need for sector reform in recent public statements. Officials have indicated that a tourism master plan is under review, though no timeline for its release has been confirmed. Critics argue that previous tourism strategies failed largely because of poor execution rather than flawed design.

The Central Bank of Nigeria's lending rates have created a difficult environment for capital-intensive projects. Hospitality businesses report that commercial loans routinely carry interest rates above 20 percent, making long-term investment planning nearly impossible. Sunday called for targeted lending facilities or loan guarantees that would reduce borrowing costs for qualified hospitality operators.

What Happens Next

Hospitality Potential Nigeria plans to submit its formal policy recommendations to the National Assembly before the end of the current legislative session. The organisation is scheduling meetings with senators on the Commerce Committee and representatives from the Ministry of Tourism to press for action.

The stakes are considerable. Nigeria's youth population is growing rapidly, and the hospitality sector could provide hundreds of thousands of jobs for young Nigerians entering the workforce each year. Without policy intervention, Sunday warns that unemployment in the sector will worsen while other African nations continue capturing tourism markets that Nigeria could legitimately compete for.

Observers say the next six months will test whether the government's stated commitment to economic diversification translates into concrete legislative or regulatory steps. If past patterns hold, advocates like Sunday may find themselves waiting much longer than they hope for meaningful change.