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Lagos loses N3.75bn tourism revenue in 5 yrs, says Commissioner


LAGOS — Lagos State Government, yesterday, said it lost over N3.75billion revenue from hotel licensing in the last six years as a result of the court case by the Federal Government in 2007.

Until the Supreme Court judgment on Friday,  the Federal Government had claimed that only the Nigeria Tourism Development Corporation, NTDC, could regulate, register, license and grade the hospitality industry.

Commissioners for Tourism and Inter-Governmental Relations as well as Information and Strategy,  Oladisun Holloway and Lateef IBirogba, respectively, announced this at a briefing yesterday on last Friday  judgment by the Supreme Court over the control of tourism and hotel regulation.

The Supreme Court had on Friday, dismissed the case by the Federal Government in which it contended that only NTDC could regulate, register, license and grade the hospitality industry.

According to Holloway, “the question relates to consumption tax and if you will recall that the ruling by the apex court also covers the consumption tax.

“It was done for the hotels registration, grading licensing on one hand and on the other hand it was also hotel occupancy and the consumption tax.

“The ruling by the court covers all I must stress that this whole thing is not meant to make money or how much the state will make.

“Specifically, our main interest is to structure the performance of the industry rather than how much we intend to gain.

”But specifically, I will give you a bump pack figure of what may have been lost.

“We stopped collecting funds from the NTDC or sharing funds with NTDC in July, 2007.

“In Lagos for instance, we believe that we have on the average about 3, 000 outlets. The big ones may be about 20, we have the mid-range and the smaller ones.

“But if we were to take an average of registration fee which is about N250, 000 in a year multiply by 3, 000 and multiply that by 6.


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