Nigeria’s accommodation services sector earned over N2 trillion just in three years (2010-2012) dominated by income from accommodation (at N1.07 trillion) and shows huge potential for the industry to attract more investments and earn more revenue for government, figures from the National Bureau of Statistics (NBS) suggest. The accommodation and food services prior to the rebasing were classified as ‘hotels and restaurants’ sector, but post-rebasing was classified as a sub- sector under the services sector.
However, the report showed that input costs for the sector are still high in Nigeria, with over N1 trillion spent in those three years dominated by fuel costs to run generators in the face of poor electricity supply across the country. “The services sector market is booming in Nigeria and with that boom comes new found diversification in range, quality and classifications, yet there is much room for growth, diversification and standardisation,” the NBS noted in a review of the accommodation and food derives sector released on Monday.
According to the NBS, suites/chalets for VIP were the highest types of accommodation built across the country between 2010 and 2012 as number of lodger by beds occupied ranked high.
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Gross earnings for the accommodation sector totaled at N638.9 billion in 2010, increasing to N683.9 billion in 2011 and then reached N730 billion in 2012. “Across the three years, the sector’s gross earnings was dominated by income from accommodation which totaled at N343,040.23 million in 2010, grew by N7,843.63 million or 2.29% to reach a gross income of N350,883.86 million in 2011.
In 2012, there was a higher level of growth of N35,179.47 million or 10.03% amounting to N386,063.33 million,” the NBS said in the report. The second largest earn- ings came from bar (beverages) which totaled at N150.8 billion in 2010, and increased to N219 billion in 2011, but declined to N176.6 billion in 2012.
The third largest contributor was income from restaurants services which grossed N64 billion in 2010, reached N75.2 billion in 2011 and further grew to N100.6 billion in 2012.
The least income contribution, however, came from camping ground, recreational vehicles and trailers totaling N914.86 million in those three years. The Nigerian hotel industry was not significantly affected by the 2008/2009 global economic crisis and is a key beneficiary of surging domestic and foreign investments, says the data office.
Regional and internationally branded hotels continue to open, primarily in Lagos, but also in Abuja and Port Harcourt, three of the largest cities – the commercial, political and oil capitals, respectively. The sector is also known for its contributions to the country’s economy especially through job creation, it generated up to 1,104,900 jobs between 2010 and 2012.
Globally, the services sector is a multi-billion dollar sector, however, in Nigeria, the most economically active of the services’ sector’s development is found in accommodations and food services.
