• Agency ordered to refund illegal charges
• HOMAL is ready to defend any appeal action thereafter – Alabi

The president of the Hotel Owners and Managers Association of Lagos (HOMAL), Chief Samuel Olu Alabi has officially announced that the Federal High Court in Suit No: FHC/L/CS/906/2025 gave judgment in favour of HOMAL and granted all the reliefs sought by HOMAL in the non-cessation of harassment by the National Institute for Hospitality and Tourism (NIHOTOUR) towards its members, including invasion of many HOMAL members premises and closing of their businesses which were only reopened after payment of ₦2.5 million each to a company called “NIHOTOUR Training, Research and Consultancy”.

The court ruling amongst others, states that the provision of the National Institute for Hospitality and Tourism Establishment Act 2022 bordering on or relating to standardisation, registration and certification of manpower requirements of the hospitality and tourism industry is illegal.

Recall that in June 11, 2025, a posse of policemen and NIHOTOUR staff, led by the Head, Inspection and Enforcement, Ibe Johnking Chinaza, imposed a lockdown on the operation of the Federal Palace Hotel & Casino, Victoria Island Lagos, disrupting activities in the hotel via acts of thuggery, harassment and bullying of staff of the hotel over illegal and unconstitutional certification, which eventually led to the brutalisation of one of the hotel’s security guards.

“It took the court appropriate order to put a stop to the advance rampaging enforcement machinery of NIHOTOUR,” Alabi noted during a press briefing with Travel, Tourism and Hospitality Journalists, and other stakeholders in the industry, at the Eko Hotel & Suits in Lagos during the week.

Why Was NIHOTOUR Created?
The National Institute for Hospitality and Tourism (NIHOTOUR) was created in 1987 consequent on a tripartite agreement executed between the United Nations Development Programme, the International Labour Organisation and the Nigerian Government to provide vocational training in the Nigeria hospitality industry

Nevertheless, for inexplicable reasons the two International Organisations later withdrew their participation in the activities of NIHOTOUR a few years after its creation.

From its creation and for many years thereafter, NIHOTOUR had no legal basis for its establishment. It was not until 2017 when tourism stakeholders were invited to the Federal House of Representatives to review a bill to set up NIHOTOUR.

At the public hearing, the stakeholders objected to many sections of the bill on the basis that the sections usurped the power of State Governments and functions of some other Federal Government agencies as provided by the 1999 Constitution as amended.

The NIHOTOUR ACT 2022
From 2017, nothing else was heard on the Bill, until an announcement regarding the enactment of the National Institute for Hospitality and Tourism (Establishment) Act was made in the year 2022. Going through the Act, it was discovered that many sections that the stakeholders advised against were still retained in the Act.

Unconstitutional Powers
The HOMAL boss stated during the press briefing that “while some of the powers bestowed on NIHOTOUR are validly necessary for its operation as a training agency of Federal Government, nevertheless we considered all those aspects dealing with certification and registration of all employees, grading of personnel and quality of services rendered by hospitality, travel and tourism in Nigeria as invalid and ultra vires the constitution.

“Hence, in 2022, we drew the attention of those at the helm of affairs of NIHOTOUR then to avert plunging NIHOTOUR into a long drawn legal battle by refraining from those contentious and empire seeking sections.”

Harassment of HOMAL members
On assumption of office of the current Director General of NIHOTOUR Dr Abisoye Fagade in late 2024, he embarked on ambitious implementation of sections of the NIHOTOUR Act kept in abeyance by his predecessor in office.

According to Alabi, NIHOTOUR DG started by inviting Chief Executive of HOMAL to his office in Abuja with less than 48-hour notice and due to the late notices served, none of the members’ representatives could attend the meeting. “This action was later followed by another letter issued in March, 2025 demanding the immediate registration of our members’ Chief Executives and their Heads of Department.

“Based on proper legal advice, our association wrote a letter dated 10th March, 2026 to NIHOTOUR objecting to the demand made on our members’ business and their principal officers. NIHOTOUR ignored this letter and reinforced their enforcement machinery with their DG visits to Nigerian Immigration Service and the then Deputy Inspector General of Police with a view to securing their assistance to compel our members’ compliance,” Alabi stated.

Emerging case
In view of non-cessation of harassment by NIHOTOUR, HOMAL had no option left than to file action at the Federal High Court in Suit No: FHC/L/CS/906/2025 in May, 2026 claiming many remedial reliefs.

Alabi revealed that notwithstanding this court action, NIHOTOUR continued its violent enforcement of the law. “Many of our members’ premises were invaded and closed, their businesses were only re-opened after payment of ₦2.5 million to a company called “NIHOTOUR Training, Research and Consultancy. On one of their outings, a staff member was brutally injured. It took the court appropriate order to put a stop to the advance rampaging enforcement machinery of NIHOTOUR.”

Alabi continued: “In parallel to the physical harassment, NIHOTOUR applied to the Corporate Affairs Commission to have the registration certificate of HOMAL obtained since 2018 withdrawn. According to NIHOTOUR, our association was being used to divert revenue meant for the Federal Government of Nigeria into our association purse. Similar letter was equally written to EFCC. We fought this withdrawal of certificate attempts by NIHOTOUR. They must have seen the futility behind their defense in the court and to de-register us to deprive us of legal representative capacity in court.

“Nevertheless, NIHOTOUR must have forgotten that a group of people could come together and file a class action for and on behalf of others. We require no formal registration to do this,” Alabi stated.

The HOMAL Boss also revealed that early this year 2026, in flagrant abuse of court process, six of HOMAL members were served with court papers in respect of another parallel case by NIHOTOUR against sixteen hotels in Abuja. “We are currently defending the interest of those members in court in Abuja and we trust that justice shall be ours soon.”
The Judgment in Suit No: FHC/L/CS/906/2025

The court gave judgement in favour of HOMAL. It granted all the reliefs sought by HOMAL thus:

. That the provision of the National Institute For Hospitality And Tourism Establishment Act 2022 bordering on or relating to standardisation, registration and certification of manpower requirement of hospitality and tourism and to impose minimum manpower standards required to operate hospitality sector or to stipulate basic, intermediate and advanced skills required in the hospitality sector and tourism sector or to certify or register qualified personnel in the hospitality, hotels and tourism sector wholly situated and operating within Lagos State, is illegal, ultra vires and unconstitutional.

.That it is the Lagos State Hotels Licensing Authority law 2010 that regulates tourism within Lagos State.

.That NIHOTOUR lacks the constitutional power under the National Institute For Hospitality And Tourism Act 2022 to regulate and revoke the Operating License issued by the Lagos State Government by virtue of the Lagos State Hotels Licensing Authority law to the claimants’ members.

.That all regulations and enforcement done within the territory of Lagos State against the members of HOMAL by NIHOTOUR pursuant to the provisions of the National Institute For

Hospitality And Tourism Act 2022 are unconstitutional, illegal, null and void.

. Mandatory Order is given for NIHOTOUR to refund all payments made by HOMAL members pursuant to its invasion and enforcement on its members.

.That a Perpetual Order of Injunction is given restraining NIHOTOUR and its agents from Forceful, arrest, detention, collection of money/fees and enforcement pursuant to the provision of the NIHOTOUR (Establishment Act, 2022).

.That the sum of N10,000,000.00 (Ten million naira only) is awarded against NIHOTOUR in favour of HOMAL.

Implication of the Judgment

Alabi said: “With this judgement, our members are protected from the physical and revenue onslaught of NIHOTOUR. We are not unmindful of the right of any of the defendants to file an appeal against the judgment given. Nevertheless, until the judgement is set aside by a higher court it defines our members’ relationship with NIHOTOUR.”

Necessary clarification
The HOMAL President stated that “it is pertinent to clarify that the issue at stake is not about upholding or improving the standard of our business.

“All our members are private individuals and corporations who have invested their hard earned resources in the development of the industry.

“Expectedly, they are always at the forefront of improving the physical and operating standards of their business. No one should fall for the exercise of development of manpower being used to cover the real intention of the government agency. How does one reconcile with the unconstitutional power given to the Federal Government Agency to regulate tourism establishments.”

Alabi further said: “Our Association is ready to defend any appeal action taken, we assure our members to continue to run their business without fear of molestation from NIHOTOUR or any other Federal Government Agencies.