Nigeria’s Hospitality Business: A Growing Economic Force with Significant Potential
Nigeria’s hospitality industry is increasingly being recognized as a critical driver of economic growth, with new investments, rising domestic travel, and global recognition positioning it as one of the country’s fastest-expanding sectors. Despite persistent challenges such as poor infrastructure and high operating costs, experts and stakeholders remain confident that the sector holds vast potential to become a dominant force both in Africa and beyond.
At a recent industry event in Lagos, Salome Danjuma, an expert at The Wheat baker Hotel, pointed out that power supply remains one of the most serious constraints holding back growth in hospitality. She explained that the constant struggle with erratic electricity forces hotels and restaurants to depend heavily on generators, significantly raising operating costs.
According to her, beyond the financial strain, bureaucratic hurdles across different levels of government discourage investors who might otherwise inject more capital into the sector.
Yet, despite these setbacks, Nigeria continues to feature prominently in continental hotel development rankings. A recent report on Africa’s hotel chain development pipeline revealed that Nigeria occupies the third position on the continent with 48 new hotel projects and 7,320 rooms currently in development.
Cities such as Lagos remain attractive destinations for international brands like Marriott, Hilton, Radisson, Wyndham, and Accor, all of which are establishing new properties to meet rising demand from business travelers and tourists. Just last year, Nigeria was ranked second on the continent by room count, with 7,622 rooms across 50 hotels signed into development.
The momentum demonstrates that, regardless of challenges, Nigeria is considered a strategic market by some of the world’s largest hospitality chains.
Corporate leaders within the industry are also proving that growth is achievable with the right strategies. Transcorp Hotels Plc, one of Nigeria’s most prominent hospitality firms, was named “Hospitality Company of the Year 2024” at the Independent Newspapers Awards. The company’s success is underpinned by an aggressive asset renewal strategy that allowed it to bounce back strongly after the pandemic.
In 2023, Transcorp recorded N41.5 billion in revenue and N6.1 billion in profit, but by 2024 revenue had surged to N70.13 billion, highlighting the resilience and opportunities in the sector when properly managed.
Other players are also gaining recognition. At the Hotel Managers Conference Africa 2025, Glocient Hospitality was honored with the award for “Best Unique Destination Experience in Nigeria” for its transformation of the Ikogosi Warm and Cold Springs Resort. The company’s General Manager, Lanre Balogun, was also recognized with a Hospitality Impact Award for innovation in sustainability and guest experience, reflecting a growing shift towards environmentally responsible and customer-focused models of service delivery in Nigeria.
The emphasis on talent development is another dimension shaping the future of the industry. At the Abuja Hotel Expo, Continental Hotels Nigeria pledged significant investment in training and mentorship programs to prepare young Nigerians for careers in hospitality. Karl Hala, the Group General Manager, stressed that building world-class talent is essential if the country intends to compete globally and sustain long-term growth in the sector.
Industry analysts maintain that Nigeria’s hospitality industry is well-positioned for global dominance if key barriers are addressed. At the International Hospitality, Tourism, and Eco-Sustainability Forum 2025 in Abuja, experts predicted that domestic travel, coupled with rising business tourism, will fuel massive growth in the next decade. However, they emphasized that adequate infrastructure, better regulation, and accessible financing will be essential if Nigeria is to realize its full potential.
Even beyond hotels and resorts, related businesses are expanding to support the broader hospitality ecosystem. Bature Brewery, Nigeria’s first craft beer brand, recently announced plans to increase its monthly production from 22,000 liters to 100,000 liters while expanding distribution to 500 locations across the country, including hotels, bars, and restaurants.
With Nigeria’s beer market estimated at $7 billion, such expansion highlights the interconnection between food, beverage, and hospitality growth.
READ MORE: Tourism: Nigeria’s Next Big Industry in the Making
Nigeria’s hospitality business is thus standing at a crucial turning point. The country has already attracted international hotel brands, witnessed strong financial performance from domestic leaders, and is increasingly earning continental recognition for innovation and sustainability. The challenges remain daunting, particularly in infrastructure and governance, but the opportunities are too significant to ignore. If stakeholders can align strategies, Nigeria’s hospitality sector could indeed evolve into one of the nation’s most powerful economic forces, generating jobs, attracting foreign investment, and offering unique experiences that place the country firmly on the global tourism map.
