Wednesday, June 25, 2025

Nigeria’s tourism industry, although richly endowed culturally and naturally, is underdeveloped and contains huge potential for economic development. The Lagos Chamber of Commerce and Industry (LCCI) President, Gabriel Idahosa, recently stressed the necessity for the tourism industry’s potential to be tapped, noting that tourism had the potential to be a major player for the diversification of Nigeria’s economy, FX generation, and job creation.

According to Idahosa, Nigeria, with its rich cultural heritage, diverse landscapes, and vibrant entrepreneurial population, remains far behind other African nations in leveraging tourism as an economic driver. In a seminar organized by the Hotel and Tourism Group of LCCI, he pointed out that while Africa’s tourism sector contributed approximately $168 billion to the continent’s GDP in 2023, Nigeria’s contribution was a mere $5 billion, representing just 3% of the country’s GDP. This is significantly lower than countries like Kenya and South Africa, whose tourism sectors contribute 10% and 8.6%, respectively, to their GDP.

Despite the potential, there are several factors stifling the growth of Nigeria’s tourism industry. First and foremost, the lack of critical infrastructure, including poor road networks, inadequate airports, unreliable intercity transport, and erratic power supply, has hindered the growth of the tourism economy. These infrastructural deficits make it difficult to attract international tourists who demand a reliable and efficient travel experience.

Security concerns are another major challenge for Nigeria’s tourism industry. A report by Statista in 2023 revealed that 47% of potential tourists cited safety concerns as their primary reason for not visiting Nigeria. This perception of insecurity, whether based on real or exaggerated threats, has created significant barriers to inbound tourism, further exacerbating the problem of underdevelopment in the sector.

Additionally, the policy environment in Nigeria is fragmented and lacks cohesion. Tourism governance is spread across various levels of government, often leading to conflicting regulations and duplicated efforts. Furthermore, the human capital in the sector is insufficiently trained, with less than 30% of tourism workers possessing formal qualifications. This gap in professional skills leads to poor service quality, undermining the overall experience for tourists.

One of the critical areas identified for tourism growth is the need for policy reform. Experts agree that Nigeria needs a cohesive and comprehensive approach to tourism governance. According to Idahosa, the establishment of a National Tourism Council under the Presidency would help streamline tourism policies and create a unified direction for the sector. Such a reform would facilitate smoother investment approvals and improve the overall regulatory environment for tourism-related businesses.

Idahosa also emphasized the need to address Nigeria’s lack of a global marketing footprint. While other African countries like Rwanda, South Africa, and Ghana run aggressive international tourism campaigns, Nigeria does not have a unified tourism brand or digital marketing strategy. The lack of a compelling global presence means that Nigeria’s unique tourism offerings, such as its diverse culture, wildlife, and historical sites, remain largely unknown to international tourists.

The need to invest in critical infrastructure cannot be overstated. Idahosa suggested that improving transportation networks, upgrading airports, enhancing electricity supply, and ensuring security would make Nigeria an attractive destination for international tourists. These improvements would not only enhance the travel experience but also create significant job opportunities within the sector.

He pointed to Ghana’s “Year of Return” campaign in 2019, which attracted 1.1 million tourists and generated $1.9 billion in revenue, as proof that a well-executed tourism campaign can yield substantial returns. By targeting the Nigerian diaspora and engaging with international tourists through digital and traditional marketing efforts, Nigeria can begin to reverse the trend of underperformance in the tourism sector.

Addressing the issues in Nigeria’s tourism sector will require a collaborative approach from the government, private sector, and local communities. The Executive Director of the West Africa Tourism Organization (WATO), Hassan Zakari, emphasized that the challenges facing the sector cannot be solved by one entity alone. Both the government and private businesses must work together to create a sustainable and thriving tourism environment.

Zakari highlighted the importance of better policy frameworks and regulatory reforms to unlock the potential of the sector. Furthermore, he called on businesses and local communities to play an active role in shaping the tourism landscape, ensuring that the benefits of the sector are widely distributed and contribute to long-term growth.

The private sector also has a crucial role to play in the development of Nigeria’s tourism infrastructure. Daisi Olotu, the General Manager of DEEs Travels and Tour Investment Limited, highlighted the burdens placed on tourism businesses by the excessive taxes, levies, and regulatory restrictions. These challenges discourage investment and complicate the process of doing business within the sector.

Olotu’s concerns were echoed by Iyadunni Gbadebo, the Director of Sales and Marketing at Eko Hotels and Suites, who emphasized the scarcity of skilled local talent and the difficulties businesses face in navigating government policies. Gbadebo called for a more supportive environment, both from the government and the private sector, to encourage entrepreneurship and foster the growth of the tourism industry.

In order for Nigeria’s tourism industry to become a major catalyst for economic development, a long-term strategic investment road map must be developed. It is advised that a five-year tourism master plan be initiated which addresses infrastructure improvement, security revitalization, policy overhaul, and overseas marketing. Through a more unified and proactive strategy, Nigeria can tap the vast potential within its tourism sector and create millions of jobs as well as draw huge foreign exchange inflows.

In conclusion, as Idahosa posited, if Nigeria can increase the tourism sector’s GDP contribution just 5% in the next five years, it can establish over two million fresh job positions. With such development, accompanied by smart capital injection and international campaigns on marketing overseas, Nigeria can become one of Africa’s and the world’s best tourism destinations.

References: World Travel & Tourism Council (WTTC), Official Nigerian Government Tourism Page