Nigeria’s Rich Culture is Enshrined in Every Part of the Society
Nigeria’s hospitality industry is one of the fastest-growing sectors in the country, driven by a large population, urbanization, a growing middle class, and a vibrant cultural and business environment. The industry encompasses hotels, restaurants, event centers, resorts, travel services, and tourism-related businesses. With population above 220 million people, Nigeria is a multi-cultural society. Nigeria’s hotel market revenue is projected to reach US$1.67bn by 2025 with an annual growth rate of 11.75% during the period of 2025-2029. The market is projected to reach US$2.61 billion by 2029 according to Statista. See Anniver Hotel Market Report.
Nigeria major cities where hospitality business thrives are Lagos, Abuja, Port Harcourt, and Calabar, hosting a mix of local and international hotels, from luxury brands like Marriott, Sheraton, and Raddison Blu to local chains and boutique lodges. These major cities see consistent growth owing to business travel, conferences, government activities, and socio-cultural events.
“Owambe,” a Yoruba word denoting a lavish and vibrant celebration, captures the essence of Nigerian culture—marked by unity, festivity, and a flair for the extravagant. These occasions are known for their bright traditional outfits (“Aso Ebi”), upbeat music, spirited dancing (often accompanied by the spraying of Naira notes), and generous servings of food and beverages. Firmly rooted in Nigeria’s social traditions, Owambe parties significantly influence the hospitality industry, fostering a mutually beneficial relationship that supports numerous players in the sector. Nigeria’s rich culture is a source of national pride and a powerful force for unity and identity. It continues to inspire, evolve, and captivate both locals and visitors alike.
With over 250 ethnic groups, Nigeria is rich in socio-cultural events. These include festivals, carnivals, and holidays which showcase the diverse ethnic groups and traditions. Socio-cultural events popular known as “Owambe” in Nigeria largely drive revenue of businesses that operate in the hospitality sector of the economy by attracting tourists and local patrons, increasing demand for accommodations, catering services, and entertainment venues. With its rich cultural heritage and diverse attractions, Nigeria is increasingly gaining attention on the international tourism stage. In 2023, the country welcomed over 1.2 million international visitors and recorded three million domestic trips. These trips are significantly driven by “Owambe” parties. Socio-cultural events attract many tourists to Nigeria, providing an opportunity to explore the nation’s vibrant cultural heritage through its festivals, customs, and artistic displays.
Nigerian culture is a vibrant celebration of life, love, and community, expressed through colorful attire, rhythmic music, and high-energy festivities. The “Owambe” celebrations, signifying accomplishments from weddings and birthdays to chieftaincy titles and funeral ceremonies, are not just a form of social gatherings but major drivers of the country’s hospitality industry.
Events and parties remain one sector that continued to grow and expand despite the present economic challenges and widespread hardship in the country. Nigerians can spend considerable amount of their resources on social gatherings and outdoor parties.
How does “Owambe” drive hotel revenue?
“Owambe” parties create a high-impact revenue stream for hotels by driving demand across lodging, event services, and food and beverage sales, while also boosting brand recognition and customer loyalty.
The Nigerian “Owambe” parties have consistently led to increase in demand for event venues. Hotels and event centres benefit from high demand for well-equipped spaces with banquet halls, gardens, or rooftop lounges to host large gatherings. Nigeria’s culture is rich in glorious foods and drinks. “Owambe” boost Food & Beverage Sales. Hotels offer outsourced catering services. This has helped to boost their revenue. Bars and lounges also see a rise in patronage.
Social gatherings create a spike in room bookings and occupancy rates especially in South West Cities where weekend parties are common. Guests traveling from outside the host city often book hotel rooms.
While Owambe parties significantly impact hotel industry gross revenue, the demand for hospitality services driven by socio-cultural event is seasonal with spikes during festive periods (October- January), requiring flexible staffing and planning. Despite this, the contrast increase in the population of middle class earners and increasing urbanization are likely to sustain and increase the impact of “Owambe” parties in boosting hotel revenue.
With hospitality businesses concentrated in major cities like Lagos and Abuja, secondary cities such as Ibadan, Abeokuta and other states in the southern parts of the country are emerging as tourism hotspots. These cities feature distinct cultural, historical, and natural landmarks that attract both local and international tourists. Given the richness of Nigerian culture, boutique hotels emerge as one of the most scalable and promising hospitality models in the country. Their ability to seamlessly integrate local traditions, culinary heritage, and cultural values allows them to offer authentic and personalized experiences that resonate deeply with both domestic and international guests. To tap into this growing trend, major hotel chains have the opportunity to expand their portfolios by launching subsidiaries or sub-brands that specialize in boutique and experiential lodging. The boutique sub-brands can be strategically positioned in emerging tourism hotspots like secondary cities or rural destinations, harnessing market opportunities of these regions. They can do this by creating strategic alliance with local players. Most international hotel brands in Nigeria operate under licensing arrangement. Marriott Hotels typically manages hotels owned by local investors or real estate companies rather than owning the properties outright
In furtherance of above, ensure talents are hired from local talent pool to build trust and benefit from local knowledge. Train staff in cross-cultural service delivery to meet international standards while integrating the country’s customs and traditions. Create high-quality customer experience that integrates international standards with local warmth and hospitality. Offer amenities such as local entertainment, cultural tours, and business facilities that cater to a diverse clientele
In addition to “Owambe” parties, other revenue drivers of hospitality business in Nigeria include political parties activities, conferences and events, Spa and Wellness, Bar and Restaurant, etc. The revenue streams allow the hotels in Nigeria to thrive in a competitive and uncertain economic environment.
What are the challenges?
Investing in the hotel business in Nigeria presents promising opportunities, but foreign investors also face several significant challenges. This include the following amongst others:
Infrastructure deficiencies. Unstable power supply can increase operating costs as most businesses rely on generators to power their facilities. Poor road networks and water supply can create inefficient operations.
Complex Regulatory Framework. Administrative hurdles involved in land acquisition including disputes associated with ownership and titles, multiple levels of approvals and permits such as permits and licenses from Federal, State and Local Authorities.
Exchange rate volatility. This include scarcity of foreign exchange, Naira depreciation and difficulty in accessing foreign exchange through the official windows. All these can affect operations, create financial risk and impact repatriation of profits abroad.
Limited Access to Accurate Market Data. Inadequate reliable market intelligence and hospitality industry analytics can make feasibility studies and demand forecasts difficult.
Other challenges include:
Insecurity and insurgent activities.
High operating costs
Widespread of poverty and corruption.
Political unrest and economic instability.
Complex tax system
In conclusion, investment in Nigeria’s hospitality industry provides international hotel chains a pathway to growth, influence, and impact especially if they approach the market with cultural sensitivity, strategic planning, and a commitment to long-term development.
