Is The Nigerian Hospitality Industry Attractive?


The hospitality industry can be categorized under the service industry and refers to the provision of lodging services, restaurants, event planning, theme parks, transpor-tation, cruise line, and additional fields within the tourism industry. The world over, hospitality industry has provided high yields in returns to investors, being an important part of development and economic emergence and attractiveness.

As the world continues on its recovery path, the Nigerian Market has seen an influx of international brands, as well as expansion and additions of more rooms in the al-ready established hotels. As expected, security is a major determining factor for these often experienced investors, therefore, the favourite destinations are Lagos, Port Har-court, Abuja, Calabar and Enugu.

Indeed, Nigeria’s macroeconomic expectations bodes well with a continued ex-pansion in this sector over the immediate to medium term. According to a report by W Hospitality group, Nigeria has 7,500 rooms under contract for 2013 only and has been experiencing a visible growth trend over the last three years.

We hereby present an analysis of the Nigerian hospitality industry’s attractiveness based on Porter’s five forces for discerning investors.


An industry is attractive if there are entry barriers that reduce the rate at which new entrants can spring up. We believe that entry barrier is high for the hospitality industry, as it is capital intensive and has become more technology driven than was previously required in the industry. Hence, this factor has increased the attractiveness of the Nigerian Hospitality Industry. 


A high level of rivalry within an industry has led to ‘price war’ among the current players. This has in turn increase the cost of doing business and put downward pressure on margins and profitability. Though the hospitality industry has a large number of competitors with very low customer loyalty and low switching costs, these issues do not decrease the attractiveness of the industry. We believe rivalry can be effectively managed through quality differentiation, innovative technology, style and exquisite service delivery. 


When an industry’s suppliers have bargaining power, they dictate price which will in turn reduce margins of the industry players. The suppliers to the hospitality industry are numerous and can easily be replaced, hence are unable to exert any significant power on the industry players. This makes the industry very attractive for prospective investors. 


In the hospitality industry, customers are afforded a variety of options based on costs, quality of service, product categories, and special offers. Indeed, the customers’ power is high, which ordinarily should make the industry less attractive however, due to the seasonality of the hospitality business, customer can only meaningfully take advantage during off-peak period. However, in peak seasons like December, when the demand for hospitality industry services is high, the customers’ power is low, giving the firm an opportunity to set prices and increase profits, recovering most of the off-peak short falls.

Overall, we consider the buyer’s power on the industry to be average. 


Based on our analysis of the industry, we consider the industry to be an extremely attractive one for prospective investors. The only known alternative for the industry under review is squatting with relatives, which has proven to be more expensive qualitatively. Therefore, the industry scored seven (7) out of ten (10) on our in-house industry attractiveness grid. Abuja, Calabar and Lagos remain the most viable places for establishing a hospitality related business.


Baking Cinnamon Cake 101

2 cups all-purpose flour
1 tablespoon baking powder
1 teaspoon ground cinnamon
3/4 teaspoon salt
2/3 cup shortening
1 1/3 cups white sugar
1 1/2 teaspoons vanilla extract
3 eggs
2/3 cup milk
1/2 cup white sugar
6 tablespoons butter
1/3 cup water
1 teaspoon vanilla extract
3/4 teaspoon ground cinnamon


Preheat oven to 350 degrees F (175 degrees C).
Grease and lightly flour a 10 inch Bundt pan.
Stir together the flour, baking powder, 1 teaspoon ground cinnamon and salt; set aside.

In a large bowl, beat shortening (butter), 1 1/3 cups white sugar and 1 1/2 teaspoon vanilla until light and fluffy.

Add eggs one at a time, beating for at least 1 minute after each egg.

Beat in the flour mixture alternately with the milk. Pour batter into prepared pan.

Bake in the preheated oven for 35 to 45 minutes, or until a toothpick inserted into the center of the cake comes out clean.

Let cool in pan for 10 minutes, then turn out onto a wire rack. Remove cake from pan while it is still warm, and poke holes around the top of the cake with a fork. Pour the warm cinnamon syrup into the holes and onto the top and sides of the cake.

P.S.. To Make Cinnamon Syrup: In a saucepan, combine 1/2 cup white sugar, butter, water, 1 teaspoon vanilla and 3/4 teaspoons ground cinnamon. Heat and stir until butter melts.

Try it and you will certainly enjoy it.. Have a lovely week Y’all…

Hospitality Job IN Abuja

Send your CV’s and a one page relevant cover letter to: for the positions of:

1) General Manager
2) Food and Beverage Manager
3) Financial Controller
4) Human Resource Manager
5) Executive Housekeeper
6) Chief Engineer
7) Sales/Marketing Manager
8) Executive Chef
9) Front Office Manager
10) Internal Auditor

-The minimum years of relevant working experience is 5years for each role.

-You also need a minimum of a 1st degree.

-You must be mature and level headed

-Have resource management skills

-Must be willing to take up new challenges facing the industry

The Logic of Suicide Terrorism

I have decided to try and understand the strategic logic of suicide terrorism- understanding it is one thing, convincing myself to write it in what should be a predominantly hospitality blog is another.

My brain says: ‘it is ur blog mate, you can do as you please’ :). Good reasoning however prevailed and the more acceptable logic behind this write-up is: terrorism has a destabilising effect on tourism and hospitality, that alone is enough reason to explore the subject, no?

Suicide terrorism is on the rise in many parts of the world, but the most common explanations do not help us understand why. Religious fanaticism does not explain why boko haram of Nigeria employs suicide terrorism, a group that adheres to religious dictates (one which is supposed to preach peace and be against murder). Existing psychological explanations have been contradicted by the widening range of socio-economic backgrounds of suicide terrorist. I am sure at one point we attributed ‘poverty’ as the single dominant factor that will influence anyone to be a suicidal terrorist? Its obviously not as the Al Mutalab story showed us (he is the son of a very, very, very wealthy Nigerian ex-banker and investor who tried to blow up a plane headed for the states).

Looking at numerous studies, I have concluded that over the past two decades suicide terrorism, hell terrorism as weapon is on the rise because terrorist have learned that it pays. Suicide terrorist and terrorist in general sought to compel American and French military forces to abandon Lebanon in 1983, Israeli forces to leave Lebanon in 1985, Israeli forces to quit Gaza strip and west bank in 1994 and 1995, the Sri Lankan government to create an independent Tamil state from 1990 on, Turkish government to grant autonomy to the Kurds in the late 1990s, Nigerian Niger Delta Militants fighting for resource control in 2007, 2008, 2009 and more recently Boko Haram fighting to push all elements of westernization out of Nigeria.

In all cases but that of Boko Haram terrorism as a political tool actually helped them make realisable gains. Thus countries prone to all forms of terrorism disguised as religious or whatever for political gains need to pursue policies that teach terrorist that the lessons of the 1980s, 90s and late 2000s no longer holds, policies which in practice may have more to do with improving homeland security than with offensive military action.

Policies that will do more to secure our(Nigerian) very, very porous borders. I once made up a poem:
“WTH is happening in this country,
last week I gave a bribe to the customs guy and he let me sneak in an AK47,
I claimed I needed for hunting.
This week, I tried, I really tried
to sneak a plastic pellet gun through customs over in London- dang I culdnt” Lol! My attempt at poetry rocks 🙂

My point is for Nigeria to truly boost its tourism profile the government need to assure foreigners and Nigerians that the country is relatively safe.

No country is really safe, but what separates us from the developed world is that most people know that if you commit a crime you will most likely be caught and punished. And if you are terrorist (that includes bloody armed robbers and kidnappers) the government should catch you and punish you, not offer you amnesty.

The solution to Nigerian terrorism is to mordernise our police, customs and army. We also need to have an honest federal government who aren’t afraid to name and shame backers of terrorism, shut down accounts belonging to terrorist and their accomplices and ultimately prosecuting them when caught.


BTW I think the government should quit hiring thugs and twats to run their Parking enforcement companies in Nigeria- got me a ticket and I am still peeved with the attitude. DaNG!

Potential Tourism Game Changers of 2013 (Nigeria)

“Nigeria is so blinded by poor infrastructure and the ‘oil’ that wheels its corruption machine to focus on the potential huge revenue the hospitality industry can generate” Anonymous

Since the creation of the Federal Ministry of Tourism, Culture and National Orientation in 1999, tourism has not seen a year with such dramatic developments with far-reaching impact on the industry as 2013. We shall just look at a few developments that have shaped the industry in the year preceding 2014.

-Intercontinental Hotel Inroad into Nigeria:

The 23-storey-building is regarded by many as the first truly five-star hotel in Nigeria. It is a N30 billion five star hotel funded by Skye and Wema bank Nigeria. The hotel was opened on October 6, 2013.
The hotel was declared open by the Lagos State Governor, Babatunde Fashola and is located in Victoria Island, it has 352 rooms. He described the hotel as “a worthy investment that has further closed the gap in the deficit of world-class hospitality in the state”

The hotel has provided employment for 650 Nigerians and 24 expatriates and is poised to offer world-class hospitality, professional training that will ensure capacity is built across the hospitality industry while empowering Nigerians and adding glamour to Nigeria’s mega city.

The Nigerian hospitality industry in the last couple of years, has seen a major endorsement and confidence from the worlds top hospitality brands as each of them are making efforts to have a foothold in the country. Carlson, Intercontinental, Holiday Inn/Ibis to name a few have some presence in the country and struggle for a share in the marketplace.

-AMCON taking over TINAPA:

This will probably prove to be another worthy marker for the new year. When the first phase of the Tinapa Business and Leisure Resort was commissioned on April 2, 2007, it was like finally Nigeria was about to emerge from the tourism wilderness into a destination for business and leisure. But so far the resort hasn’t lived up to the vision and hype that heralded the opening. The reasons for this abound: interference by the Nigerian Customs, bad roads, government management, poor implementation of government policies, insecurity in the country and many others.

The Asset Management Corporation of Nigeria(AMCON) came to the rescue of the ailing resort by buying over the majority shares of the resort. This takeover has been seen as a good sign generally because of the way AMCON has turned the bad assets of a couple failed banks into profits in two years. Based on the agreement, AMCON is to buy back Tinapa’s debt totalling N18.dbn and provide N26bn for the revitalisation and resuscitation of the resort to reposition it as a private sector driven enterprise.

-Finally, the change in leadership of NTDC might mean a lot or nothing at all:

The Tourism development corporation changed leadership from Otunba Segun Runsewe to Mrs Sally Mbanefo in May 2013. Mr Runsewe did a reasonable job encouraging tourism, was an experienced tourism expert and was the face of the industry from 2006-2013. Mrs Sally is a seasoned banker on the other hand and has promised to build on the achievements on Runsewe and take the industry to greater heights. We just hope that with her connections in the banking sector she will woo investors into developing infrastructure that will ensure Nigeria moves closer to fulfilling the potential goldmine ‘Tourism’ is.

Let’s hope the markers set last year will lead to great strides being made into improving Tourism in Nigeria this year. Let’s hope Mrs Mbanefo and AMCON do their job and provide the leadership and the direction the industry so desperately needs.

The tourism industry has the potential to create jobs, build capacity, promote even development across the country, promote th good values of the country, improve security etc, tourism should be supported, tourism should be a major focus……….

Happy New Year Folks!! Remain Hopeful

Hospitality Recruitment In Delta State


Our client, a major player in the Hospitality Industry
located at Asaba, Delta State requires the services of
the vacant position:

Job Title: Hotel Manager
Code: EMD001
Location: Asaba, Delta State
Required Qualifications, Skills and

Required Experience

-HND/B.Sc in Hotel management or any of the SocialSciences.

-Four years relevant experience in at least a Four-Star Hotel

-Good marketing, negotiation and communication skills,

-Knowledge of QuickBooks and Roommaster would be added advantage

Application Closing Date
19th November, 2013
Method of Application
Qualified applications should forward their application (stating the code as the subject of the application) to:

Managing Partner,
NED Consultants

Nigerian Tourism: A Passport to Economic Diversification

In a paper titled ‘Growth Opportunities in the Travel Agency/Hospitality Sector’ delivered by the Zonal Head of Business Banking, Abuja Mrs Sandra Okoli, the plan by the Federal Government to diversify the economy from crude oil production is an amazing initiative. All around the world, Tourism has become a major source of economic growth, employment, and foreign exchange earning and Nigeria should be no different.

According to her, the potential annual export revenue generation for Nigeria is in the excess of $224 million or N35 billion while the potential total annual revenue generation is about $520 million or N83 billion. She also noted that tourism can contribute over the current five per cent to the nation’s Gross Domestic Product.

But the reality in the sector is rather gloomy, take for example the reported takeover of 85 per cent of the shares in the multi-billion naira Tinapa Resort. Does this reflect a depressed tourism industry or is it just that tourism ventures entered in or promoted by the Federal and State governments have been business failures?

But tourism is big business in many countries and the involvement of government in those countries are always vital. Where does the Nigerian government get it wrong then? Take for example in Egypt where despite the Arab spring of 2012, tourism still brought in 9 million. Tourism is vital to economies and big foreign exchange earners of Dubai, South Africa, Singapore, Kenya, Malaysia, Thailand, India, Brazil, China to name a few and their Governments have played massive roles in these successes.

Why then is Nigeria’s case different? Why then does the governments involvement in national projects like Yankari Game Reserve, Tinapa and Gurara Falls always turn out massive failures?

It has to be noted that the Nigerian ideas are usually amazing, the implementation is what seems to lack. Take for example the Tinapa Resort which was designed as a veritable tourism attraction and investment centre (with facilities for retail, wholesale, leisure and entertainment) to rival places like Dubai at a cost of $350 million in 2007 has been running at a loss for 6 years. Why does this keep happening I ask myself?

In my opinion, all that needs to be done is for the leadership through the Nigerian Tourism Development Corporation to have a Tourism Strategy. Government should build structures, government do not necessarily need to run those tourism based businesses. For the national tourist sites the government needs a more professional driven workforce who set out to help the government make a profit while naturally running the business efficiently.

The government needs to decide what role they have to play in strengthening and diversifying the Nigerian economy through properly harnessing the huge potential of the Tourism industry.

Nigeria has diverse cultures, a huge population, a rising middle class, workforce, improving structures, natural wonders et al- all these if harnessed has a potential to create jobs, build capacity, develop structures and generate massive income.