NIHOTOUR: Compliance exercise part of nationwide reform of hospitality sector

The National Institute for Hospitality and Tourism (NIHOTOUR) says its recent compliance monitoring visit to Federal Palace Hotel & Casino in Lagos was lawful, professional, and part of a broader nationwide reform.

The clarification follows reports alleging thuggery, brutalisation, and a ransom demand during the exercise on Wednesday.

Chike Ukekwe, director of inspection and enforcement at NIHOTOUR, said the agency is empowered by law to regulate, train, and standardise players in Nigeria’s hospitality, travel, and tourism industries.

He said the compliance drive is a result of months of structured consultations and is guided by legal processes and stakeholder consensus.

Ukekwe said between December 2024 and February 2025, NIHOTOUR held meetings with key bodies under the Federation of Tourism Associations of Nigeria (FTAN), including the Nigeria Hotel Association, HOFA, NANTA, and NATOP.

He explained that formal demand letters were issued on March 4, 2025, to hotels and restaurants nationwide — including Federal Palace Hotel — followed by final reminders in April and contravention notices in May.

“These efforts were consistent, professional, and well-documented,” he said.

‘POLICE PRESENCE WAS STANDARD PROTOCOL’

On the presence of law enforcement during the exercise, Ukekwe said it is standard operational procedure for federal enforcement to be accompanied by officers for the safety of all parties.

He confirmed that a physical altercation occurred at the venue, reportedly after a hotel staff member tore a police officer’s uniform.

“The incident is under review, and disciplinary or legal steps will be taken if necessary,” he said.

Ukekwe denied reports that the hotel was closed or its operations disrupted.

“Contrary to some claims, the NIHOTOUR team did not shut down the hotel or halt its operations,” he said.

“Our presence was solely for inspection, verification, and enforcement, as mandated by law.”

NIHOTOUR also addressed claims that Federal Palace Hotel paid N2.5 million and N100,000 to avoid sanction.

“No valid payment was made,” Ukekwe said.

He added that a transfer initiated during the visit turned out to be “a dud transaction”, and the matter is now under formal scrutiny.

Ukekwe said the N2.5 million is a standard non-compliance fee applicable to large-scale operators who ignore repeated notices, while the ₦100,000 is for processing temporary compliance documentation.

“These figures are fixed, not arbitrarily imposed, and apply only after multiple chances for voluntary compliance are ignored,” he said.

Ukekwe stressed that NIHOTOUR’s goal is sector-wide reform — not intimidation or harassment.

“We are not on a witch-hunt,” he said.

“Our focus is to reform an industry vital to Nigeria’s economic future — one that prioritises professionalism, transparency, and consumer protection under the Renewed Hope Agenda.”