The Federal Government has said it is taking steps to provide regulatory certainty in Nigeria’s hospitality and tourism sector as part of efforts to reposition the industry as a major driver of economic growth, job creation, investment and national prosperity.
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The Minister of Art, Culture, Tourism and the Creative Economy, Hannatu Musawa, stated this at the 2026 Punuka Annual Lecture, themed “Development, Financing and Value Creation in Nigeria’s Hospitality Sector.”
Musawa, who was represented by the Director-General and Chief Executive Officer of the National Institute for Hospitality and Tourism, Dr Abisoye Fagade, said the full potential of the sector cannot be realised without a formal regulatory framework, clear standards and investor-friendly structures.
According to her, investors are more likely to commit capital where there is certainty, competence and enforceable standards.
“There is need for regulatory certainty because capital follows competence. Investors will follow standards, patterns and structure,” she said.
The minister described hospitality as a central part of the tourism value chain, noting that beyond accommodation and food services, the sector supports entrepreneurship, strengthens local supply chains, creates jobs and contributes significantly to national and sub-national economies.
She said unlocking the sector’s potential requires deliberate action in the areas of development financing, value creation and a strong regulatory ecosystem.
“The hospitality sector occupies a unique position within the tourism value chain. Beyond accommodation and food services, the sector drives entrepreneurship, supports local supply chains, creates employment and contributes significantly to the national and sub-national economies.
“Unlocking the full potential of the sector requires deliberate action involving development financing, value creation and a strong regulatory ecosystem,” Musawa said.
She added that the development of the sector must be anchored on standards, skills, innovation and infrastructure, stressing that a globally competitive hospitality industry depends on a trained workforce, effective quality assurance systems and institutions capable of supporting sustainable growth.
The minister further said the sector requires innovative financing mechanisms, improved access to credit and strong public-private partnerships to accelerate growth and expand investment opportunities.
Musawa reaffirmed the commitment of the Tinubu administration to creating an enabling business environment, promoting ease of doing business, strengthening regulatory and international frameworks, and supporting tourism and hospitality as major contributors to Nigeria’s Gross Domestic Product.
In her remarks, the Managing Partner of Punuka Attorneys & Solicitors, Mrs Elizabeth Idigbe, described the hospitality sector as a powerful economic driver sitting at the intersection of infrastructure, investment and national development.
According to her, the sector has immense potential to unlock value, stimulate local economies and attract both domestic and foreign investment if properly structured, effectively financed and well regulated.
“When thoughtfully structured, properly regulated and effectively financed, it holds immense potential to unlock value, stimulate local economies and attract both domestic and foreign investment,” she said.
Mrs Idigbe explained that the annual lecture was not merely designed to identify challenges, but to inspire dialogue, promote collaboration and contribute to practical, forward-looking solutions across key sectors of the economy.
Also speaking, Isioma Idigbe, Partner in the Media, Entertainment, Intellectual Property and Technology Practice Group at Punuka, said Nigeria must address global perceptions about safety and security if the tourism sector is to grow.
She cited Brazil’s example, where safe zones were created in previously unsafe areas and later developed into major tourist destinations.
“We must address the global perception of Nigeria as an unsafe place to visit,” she said.
She also stressed the importance of specialised legal expertise in driving growth in the sector, noting that lawyers play a critical role in helping investors and operators navigate regulatory requirements, investment structures and compliance obligations.
According to her, existing skills and capacity gaps must be addressed for Nigeria to maximise the opportunities in tourism and hospitality.
“At Punuka, we want to see the tourism space grow to its maximum potential,” she added.
The guest speaker, Mr Ian McAuley, an international hotel developer, urged stakeholders in the public and private sectors to work together to grow Nigeria’s tourism and hospitality industry.
He said value in the sector is not created by one factor alone, adding that Nigeria’s state capitals present significant domestic hospitality and tourism opportunities.
“Value is never created by one factor alone,” he said.
McAuley also underscored the importance of good governance, stating that it boosts investor confidence, lowers the cost of capital and creates value.
Chairman of Pyramid Regal Services Limited, owners of The George Hotel, Mr Tein George, who chaired the lecture, said tourism currently contributes between 3.6 and 4.5 per cent of Nigeria’s GDP, representing about $17bn to $22bn annually.
He said the sector employs about two million people, representing approximately six per cent of Nigeria’s workforce, with young people between the ages of 18 and 35 making up about 60 per cent of the workforce.
According to him, the industry offers a major solution to youth unemployment if properly developed and scaled.
“The sector employs about two million people, which is approximately six per cent of our workforce. More importantly, about 60 per cent of the workforce are young people between the ages of 18 and 35. It therefore provides a major solution to youth unemployment if we can grow the sector rapidly,” he said.
George added that the industry generates about $4bn in foreign exchange and has a multiplier effect of 1.8, meaning every one dollar spent in the industry provides an additional boost of $1.8 to the economy.
He, however, noted that Nigeria still has much work to do, as the sector’s contribution remains far below its potential when compared with countries such as Egypt, South Africa, Mauritius and France.
The event brought together senior legal practitioners, policymakers, regulators, investors and business leaders to discuss practical frameworks for development, financing and value creation in Nigeria’s hospitality and tourism sector.
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