Hoteliers cite electricity tariff hike for rise in lodging rates

Hotel Owners Forum Abuja (HOFA) has blamed the recent hike in electricity tariffs for the high lodging charges in hotels in the Federal Capital Territory (FCT).
The president of HOFA, Funmi Kazeem, said the recent electricity tariff hike has affected the cost of lodging in hotels in the FCT.
Ms Kazeem said this had also reduced the number of customers patronising hotels in the territory.
According to her, the electricity tariff hike has affected the sector, as hotels, resorts, and other tourist facilities also face high operating costs.
She added that this had led to a reduction in investment and decreased competitiveness, which in turn impacted the overall economy.
Ms Kazeem also noted that the tariff hike had affected the standard of living of many individuals in the country.
“The tourism sector, particularly the hospitality sector, is the second-highest employer of labour after the government made it a critical component of the country’s employment landscape.
“The hike in electricity tariff has really affected our hotel business as well as our customers. It is a great challenge confronting the sector. Addressing these challenges and other challenges in the sector is crucial to sustaining progress and promoting economic growth,” she said.
The HOFA president commended President Bola Tinubu’s administration for implementing policies to boost economic growth through privatisation and foreign investment.
She added that such would help to increase the GDP growth rate and improve the country’s economic outlook.
Meanwhile, some guests attributed the high cost of lodging to the country’s recent economic situation.
According to them, the exchange rate and general inflation made guests pay more in most hotels, which was unpleasant.
Clinton Brown, a businessman, said that hotel owners are paying high electricity tariffs and buying expensive diesel.
According to him, rooms, food and drink rates have doubled compared to last year.
Mr Brown added that he would not blame hoteliers as much because some spend millions to run generators to satisfy their guests.
Obinna Chukwueku said hotel lodging charges had drastically increased due to the impact of the exchange rate and general inflation that affected guests.
Chukwueku added that many hotels in FCT were responding to the country’s economic realities because the cost of running hotels had doubled in recent months.
Doris Ezekiel, a fashion designer, said that hotel lodging was high now due to the electricity tariff and other costs of running the hotel.
Ms Ezekiel noted that the authorities had increased taxes and regulatory fees, saying that the people in the hospitality sector decried the multiple taxations in the industry.
“They have no option but to pass the hike on to their guests. Many standard hotels in Abuja have doubled their cost of lodging,” she said.
(NAN)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette

Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”

States
Ibadan men nabbed for kidnapping five-year-old girl, demanding N10 million ransom
The suspects, Adegboye Seyi Sunday and Adegboye Elijah Adefemi, were nabbed in Ibadan by the police.

Economy
World’s Richest AI Creator: Meet Deepseek founder Liang Wenfeng worth $36 billion
Ranked among China’s 100 richest people, Mr Liang was on Time magazine’s 100 Most Influential People in AI in 2025 and on Fortune’s 100 Most Powerful People in Business.

Economy
FG expresses commitment to improving ease of doing business
FG says it remains committed to improving the ease of doing business, strengthening investor confidence and implementing policies that encourage enterprise growth.

Health
ATBUTH unveils digital app to enhance healthcare service delivery
The Abubakar Tafawa Balewa University Teaching Hospital, Bauchi, has unveiled a DHS mobile app to enhance healthcare service delivery.

Ibadan
Oyo Terrorists: ASNAT hails Oriire schoolchildren’s military rescue operation
The Association of Nigerian Artisans and Technicians has commended President Bola Tinubu and the Nigerian military for rescuing abducted schoolchildren and teachers in Oyo state.

States
Navy reaffirms commitment to national development through civil-military relations
Nigerian Navy chief Idi Abbas has reaffirmed commitment to national development through strengthened civil-military relations and sustainable community development initiatives.





