The high rate of inflation in Nigeria is significantly impacting the hospitality industry, with many hotels forced to shut down operations. Hoteliers are urgently calling on the government for intervention to address the escalating costs associated with running their businesses.
In interviews with The PUNCH, industry stakeholders highlighted their struggles, which align with recent data from the National Bureau of Statistics. This data indicates that inflation in the restaurants and hotels 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 current situation as “unbearable,” particularly due to soaring fuel costs and inconsistent electricity supply. He noted that while hotel operators previously managed fuel costs at around ₦800 per litre, prices have now escalated to ₦1,200 per litre. The burden of high diesel costs, often exceeding ₦20,000 for limited customers, has led many to contemplate closing their establishments.
Anyanwu also expressed concerns over the exorbitant electricity bills hoteliers are facing, exacerbated by erratic supply from distribution companies. “We are not receiving sufficient electricity. When you assess the bills against the amount of power supplied, it raises questions about consumption,” he remarked.
He stressed the necessity for immediate government action, urging officials to prioritize the needs of the masses who supported their election. “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 stated.
Similarly, Gbenga Sumonu, President of the Nigeria Hotel and Catering Institute, painted a grim picture of the industry’s future. He noted that the current hyperinflation has destabilized the economy, impacting various operational aspects, including rising material costs and exorbitant energy expenses.
The hospitality sector’s plight underscores the broader economic challenges facing Nigeria as inflation continues to rise, affecting both businesses and consumers alike. Without timely intervention, the situation could worsen, potentially leading to further closures and a significant loss of jobs in the industry.
