Court nullifies NIHOTOUR’s regulatory powers over Lagos hotels

The Federal High Court in Lagos has declared unconstitutional the powers of the National Institute for Hospitality and Tourism (NIHOTOUR) to regulate, register and certify manpower in hotels and tourism establishments operating wholly within Lagos State, in a judgment described by the Hotel Owners and Managers Association of Lagos (HOMAL) as a major legal victory for the hospitality industry.

The court also restrained NIHOTOUR and its agents from carrying out enforcement activities against HOMAL members under the National Institute for Hospitality and Tourism (Establishment) Act, 2022, including forceful arrests, detention and the collection of fees.

In addition, the court in the judgment passed on Thursday, October 15, 2026, ordered NIHOTOUR to refund payments made by HOMAL members in connection with its enforcement operations and awarded N10 million in damages against the institute in favour of the association.

ALSO READ: Ibadan: Fire destroys property worth millions of naira at Bodija market

Highlighting the outcome of the judgment, HOMAL President, Mr Samuel Alabi, said, “A 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 provisions 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”, the President stated.

Disclosing the judgment at a press conference held at Eko Hotels, Lagos, on Monday, October 19, 2026, where he maintained that the dispute centred on the constitutional limits of federal regulatory authority over hospitality businesses operating within Lagos State, Alabi said “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”.

According to Alabi, the court, in Suit No. FHC/L/CS/906/2025, granted the reliefs sought by the association, including a declaration that provisions of the 2022 NIHOTOUR Act relating to the standardisation, registration and certification of hospitality and tourism personnel, as well as the prescription of minimum manpower requirements, were unconstitutional when applied to establishments wholly situated and operating within Lagos State.

The judgment, as presented by HOMAL, also affirmed the regulatory authority of the Lagos State Hotels Licensing Authority under the Lagos State Hotels Licensing Authority Law, 2010, over tourism establishments within the state.

Explaining further, he said, “From its creation and for many years thereafter, NIHOTOUR had no legal basis for its establishment. It was not until 2017 that 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”, Alabi emphasised.

Alabi, who addressed the press alongside the Director General of HOMAL, Mr Adeniyi Ologun, said the court further held that NIHOTOUR lacked the constitutional authority to regulate or revoke operating licences issued to the association’s members by the Lagos State Government.

He said the ruling rendered unconstitutional, illegal, null and void the regulations and enforcement actions undertaken by NIHOTOUR against HOMAL members within Lagos State pursuant to the disputed provisions of the federal law.

Explaining the background to the litigation, Alabi said NIHOTOUR was established in 1987 following a tripartite agreement involving the United Nations Development Programme, the International Labour Organisation and the Nigerian Government.

He acknowledged that NIHOTOUR had legitimate responsibilities as a federal training institution but argued that its authority should not extend to the registration and certification of all hospitality personnel, the grading of workers or the regulation of service standards in establishments operating wholly within Lagos State.

He said HOMAL had drawn the attention of the institute’s leadership to the disputed provisions in 2022, urging it to avoid actions that could trigger prolonged litigation.

Alabi said tensions escalated following the assumption of office of NIHOTOUR’s current Director-General in late 2024, alleging that the institute began pursuing enforcement measures based on provisions that had previously remained largely unimplemented.

Alabi said the association subsequently instituted the Federal High Court action in May 2026, seeking judicial determination of the legality and constitutionality of the institute’s enforcement powers in Lagos State.

He alleged that enforcement operations continued despite the pending suit, resulting in the invasion and closure of some member hotels.

According to him, some establishments were reopened only after payments of N2.5 million to a company identified as NIHOTOUR Training, Research and Consultancy.

Alabi said the association recognised that NIHOTOUR or other defendants could exercise their right of appeal, but insisted that the judgment remained binding unless set aside by a higher court.

He assured members that HOMAL would defend the judgment in the event of an appeal and urged them to continue their businesses without fear of what he described as regulatory harassment.