Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


LASG lost N3.75bn to regulation of hotels

25 July 2013, 07:51

Ikeja - The Lagos State Government said that the sum of N3.75 billion was lost to the illegal regulation of hotels by the Nigeria Tourism Development Corporation (NTDC) in the last six years.

Disun Holloway, the Commissioner for Tourism and Intergovernmental Relations revealed this on Wednesday in Ikeja while briefing the media on last Friday`s Supreme Court`s judgment on hotel regulation.

He explained that the loss represented the revenue that would have accrued to the state from hotel licencing, grading other functions, which the NTDC usurped since 2007.

The News Agency of Nigeria (NAN) recalls that a panel of the Supreme Court of Nigeria, led by Justice Suleiman Galadima, had on Friday unanimously declared that it was only State Houses of Assembly that could make laws on tourism or the licensing and grading of hotels and other hospitality establishments.

The court said the 1999 Constitution only empowered the National Assembly to regulate tourist traffic, "a term which does not include hotels grading and licencing.’’

It validated both the Hotel Licencing Law of Lagos State (as amended), and Hotel Occupancy and Consumption Law, declaring as null and void the conflicting sections of the NTDC Act.

"We stopped sharing funds from the NTDC in July 2007 and in Lagos, we believe we have on the average about 3000 establishments, excluding the five stars and other hotels.

"If we are to take an average, N250,000 and multiply by 3000 establishments, for the six years the case lasted, that will give us N3.75billion that we have lost so far," the commissioner said.

Holloway commended the verdict but said the state was looking at how it would use it to reposition the tourism sector rather than the revenue it would make from it.

The commissioner stated that the judgment would greatly help address the ambiguities and uncertainties in the hospitality industry and would boost investor`s confidence in the tourism sector.

He urged the over 3000 hotels and other hospitality establishments yet to register with the state government to do so in order to legalise their operations.

Holloway urged the NTDC to go back to its real functions of managing tourist traffic in the country through effective information management and tourism promotion programmes.

-    NAN

Tags ikeja finance

Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...