Multiple taxes may force Nigerian hotel proprietors out of business – Association

The association called for better understanding from the government.

The Hotel Owners Forum Association (HOFA) said on Saturday that multiple taxes on hotel proprietors by government agencies could cripple Nigeria’s hospitality industry.

The President of the Association, Onofiok Ekong, gave the indication in an interview with the News Agency of Nigeria (NAN) in Lagos.

He said the multiple taxes could force hotel proprietors out of business in the country, if immediate solution was not provided.

“Hotel operators are faced with daunting challenges; apart from losing members of the association through closure and outright change of purpose.

“The lamentations of the existing ones over multiplicity of taxes can only be ignored to the detriment of the economy,” he said.

Mr. Ekong said government needs to engage all stakeholders in a holistic discourse to enable it understand the magnitude and dimensions of the challenges facing the industry.

“This will help to bring out recommendations that will help Nigeria have a more investment-friendly tax regime,’’ he said.

The president called on the Federal Government to take all necessary steps to reverse the current trend. He said hoteliers pay a variety of taxes, which had made it so difficult for them to stay afloat.

The taxes, according to the association president, include the consumption tax, value added tax, company income tax, withholding tax, health certificate, and waste operation permit. Others are vehicle emission fee, contravention charges, business premises and administrative charges for environmental audit.

Mr. Ekong said that the multiple taxes had contributed to the increased charges by hotel operators in the country, saying that the numerous taxes were affecting the growth of the industry.

He said that the hospitality industry contributes greatly to the nation’s economy through payment of such taxes being collected by government agencies and called for urgent intervention and incentives to operators to enable the hotels stay afloat.


Support PREMIUM TIMES' journalism of integrity and credibility


Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.


NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required


Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: New Discovery! Click Here To See A Miracle Device That Can Cure DIABETES, BLOOD PRESSURE, STROKE, ARTHRITIS, PAINS, OBESITY And 50 Other CHRONIC DISEASES Without Drugs Or Herbs.. Click Here Now To See It

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.