News
Why Recession Will Grow Nigeria’s Travel & Hospitality Industry
The International Monetary Funds (IMF) predicted in 2015 that Nigeria’s economy will slide into a recession in 2016 by 1.8 per cent.
The forecast indicated that our economy will grow at a much slower pace than South Africa’s. Months after the prediction, truly Nigeria slipped into a recession.
Everywhere around the world, recession is one of the most dreaded economic downturns. The reasons – although not far-fetched – include, but not limited to, drop in stock market, hike in unemployment, salary cuts in most private establishments and monumental decline in housing market.
Many economy and non-economy experts have weighed in on the ways to curb the ripple effects of this monster that has clutched its fist on commerce and trade. But like they say, talk is cheap.
Recently, I heard in the news that the Minister of Finance, Mrs. Kemi Adeosun, out of her many ‘un-put-down-able’ rhetorics on how to revive the economy and chase out recession, had said the commencement of rice production in some parts of the country will deal a major positive blow on the recession.
Well, I’d like to think she was quoted out of context because I can’t think of any immediate impact rice production will have on the economy right now.
But then again, what do I know about the economics of a country? Absolutely nothing!
Our fears and worries about the ugly reality of where we’re at this point in time are completely not misplaced.
We have reasons to quake with fear. Prices of items have shot up like never before. And sadly, revenue/income has remained firmly reluctant to grow.
Not too long ago, I saw a meme that was circulated on social media which compared very aptly the rising costs of living to a student who passes his exams and moves from one class to the other, and income to a student who has been repeating same class with no hope of graduating to a new class. While the meme was very amusing, it passed a very serious message in a comical way but the underlining truth could not be missed for those who could read between the lines.
Nonetheless, this doesn’t mean that the things a recession carries around are mere economic vices. A number of macro economy experts have made deliberate efforts to shift our attentions to the equally promising opportunities that a recession promises.
While it may be highly improbable to sell these opportunities to anyone, I think they are surprisingly appealing, depending on what side of the divide you are.
As a travel and tourism enthusiast, I am always on the look-out for bright and ingenious ideas on how to grow our hospitality sector.
I led myself to a lot of mind-boggling and quizzical conversations on how to rewrite a better destiny for this sector. And so, an economy in a recession, as far as I am concerned, is not a threat to this sector. Rather, it will boost its growth and the attendant benefits are the ingredients we need to promote the sector.
Recently, Jumia Travel’s global CEO, Paul Midy was in the country on a week-long working visit.
During his stay, a number of journalists dropped by our office to have a quick chat with him. Although, more than 90% of these distinguished journalists intended to inquire if Jumia Travel will be relocating office from Nigeria due to the recession and also find out what the company was planning to do to stay afloat in business.
They all came prepared, each of them hoping to be the first to break the news of the company’s decision to pack its business from Nigeria and relocate to any of the more economically stable African countries.
Sadly, the CEO’s response was indeed the most shocking comment they had ever received from any top boss they have spoken to since the recession paralyzed the economy.
Paul quickly dismissed their speculations on any plot to relocate. He stated that the recession makes our business more lucrative and profitable. The shock on their faces betrayed their expectations.
“The reason, he continued, is because recession has made the country a cheaper place to do business. The fall in the value of naira makes it cheaper for people who want to trade with Nigeria and for businessmen and women to travel through Nigeria to other destinations both in Africa and beyond.
“We know that many foreign firms are withdrawing from Nigeria but we are instead increasing our investment because Nigeria is our core market and with the depreciating value of the naira, goods from this part of Africa have become very cheap for our customers in other parts of Africa. We see recession as a short term and mid-term situation but in the long term, Nigeria is still the strongest market with almost 200 million people.”
The recession has restricted a number of Nigerians to the shores of the country to spend their vacations.
It is therefore not surprising that hotel booking portals have received an unprecedented requests from well-meaning Nigerians who are planning to spend their vacations in some of the tourist sites in the country.
People are already locking down a lot of hotels in the South South for the Calabar International festival in December.
The recession has awakened our forsaken interests in engaging in intra-country vacations by visiting any of the choice destinations spread all over the country. A lot of airlines, hotels, travel agencies, OTAs etc, will undoubtedly benefit immensely from the patronage which will contribute significantly to our GDP eventually.
More patronage for these service providers will also attract increase in the workforce, meaning employment for more people. Imagine the millions of nairas which will hitherto be spent in other countries now being spent internally. The ripple will run through the whole gamut of our economy.
As one writer put it, “Nigerians are known for their love for luxury goods, foreign products, showing off and taking loans to keep up with the lifestyle.
If people will ever recognize this misbehaviour, these things won’t happen during a recession. As we know from the past, a recession lasts for about 10 months, so good times will be back. Nevertheless, they are necessary and you will experience a few recessions in your life, so better be prepared.”
Olukayode Kolawole is head of PR & Marketing | Jumia Travel NG
Oladipupo Adebutu, Peoples Democratic Party (PDP) governorship candidate in Ogun State, has alleged that all state governors in Nigeria are benefiting from and misappropriating local government allocations.
Oladipupo Adebutu
Adebutu made the remarks at the Ake Palace in Abeokuta during a meeting with the Egba Traditional Council, where he sought the support and blessings of traditional rulers for his governorship ambition.
He was accompanied by his running mate, Lateefat Sowunmi-Kolapo; the PDP senatorial candidate for Ogun Central, Iyabo Obasanjo; the Ogun State PDP Chairman, Abayomi Tella; and other party leaders and candidates.
Addressing the traditional rulers, Adebutu declared that granting full financial autonomy to local governments would be one of the defining policies of his administration.
“I will do something that will stun this nation and put us in the right direction. Local governments shall get their own money,” he said.
He added: “We must make sure we get local government autonomy. I have been reiterating to you that I, Oladipupo Olatunde, son of Adebutu, was at the National Assembly twice, and I can boast that I didn’t embezzle public funds. How many politicians can say this?”
Adebutu accused governors across party lines of diverting local government funds.
“It’s not a party thing. Both APC and PDP, all the governors are embezzling local government allocations. It’s not a secret,” he said.
He argued that local councils were able to deliver more development when they had greater control over their finances.
On infrastructure financing, Adebutu said governments must adopt new approaches rather than relying on borrowing.
“You don’t borrow money for infrastructure anymore,” he said, while promising to construct roads that would improve connectivity between Ogun State and Lagos.
In his remarks, Abayomi Tella, State Chairman of the PDP, lamented that the local government system in the state is in a state of collapse, recalling that as a former council chairman, he received N200 million as an allocation and used it to construct four roads within his local government.
He expressed concern that the current local government chairmen cannot point to any project of similar impact, attributing the situation to a lack of financial autonomy.
The PDP chairman said he strongly believes in Adebutu’s advocacy for local government autonomy, stressing that Adebutu is prepared and ready to lead the development of Ogun State.
Sowunmi-Kolapo, deputy governorship candidate, called on her kinsmen to support her political aspiration, noting that she has continued to support the development of Egbaland.
Also speaking, Iyabo Obasanjo, PDP candidate for Ogun Central Senatorial District, said that after leaving the APC following her unsuccessful governorship bid, she came to believe that Adebutu has the vision and political will to actualise her aspirations and manifesto for the people.
Obasanjo further noted that no political party has a more formidable team in Egbaland than the PDP, urging Egba monarchs to throw their weight behind the party in the interest of the people.
In his welcome address, the Alake and Paramount Ruler of Egbaland, Oba Adedotun Aremu Gbadebo, described Adebutu as “trustworthy and reliable,” declaring his support for the party’s flag bearer ahead of the 2027 governorship election.
The Alake recalled his long-standing relationship with Adebutu’s father and expressed confidence in Adebutu’s character and leadership qualities.
“The son of a lion must resemble the lion. In fact, he is an even better version of his father,” Oba Gbadebo said.
Federal high court in Abuja has ordered the final forfeiture of N941,994,079.86 linked to suspected ghost workers uncovered in the integrated payroll and personnel information system (IPPIS) to the federal government.
IPPIS is a centralised payroll system the federal government introduced to manage the salaries of federal public sector employees.
Binta Nyako, presiding judge, gave the order following an application filed by the Independent Corrupt Practices and Other Related Offences Commission (ICPC).
“That an Order is hereby made for the Final Forfeiture to the Federal Republic of Nigeria the Sum of N941,994,079.86 seized during investigation into the IPPIS Payroll scam in the year 2024,” Nyako ruled.
Okor Odey, ICPC spokesperson, announced the forfeiture in a statement issued at the weekend.
The ICPC spokesperson said investigations by the commission uncovered “large-scale payroll fraud involving hundreds of non-existent public servants, with a total sum of N941,994,079.86 traced to accounts linked to the scheme”.
Odey said a review of the IPPIS conducted in 2023 revealed the “existence of numerous “ghost workers” embedded within the payrolls of several Ministries, Departments and Agencies (MDAs)”.
According to him, following the findings, President Bola Tinubu approved a “comprehensive audit” of the IPPIS.
He added that a joint investigation between the ICPC and the office of the accountant-general of the federation in April 2025 led to the discovery of 587 suspected ghost workers on the IPPIS platform.
“Investigations revealed that fictitious IPPIS identities had been created for non-existent personnel across multiple MDAs, with salaries paid over extended periods into accounts belonging to individuals and companies,” Odey said.
“In many cases, the account names did not correspond with those of the purported employees, while some accounts received multiple salary payments simultaneously.”
The ICPC spokesperson said the agency placed post no debit (PND) restrictions on all identified accounts to freeze the funds suspected to be proceeds of fraud.
He said the affected MDAs include the Nigeria Police Force (NPF), federal ministries of defence, education, agriculture and rural development, works, water resources, and interior.
Others are National Board for Arabic and Islamic Studies, University of Benin, University of Calabar, University of Nigeria, Nsukka, University of Maiduguri, Ahmadu Bello University, Zaria, and the office of the accountant-general of the federation.
The ICPC spokesperson said 120 civil servants were cleared after their identities and employment status were confirmed following a verification exercise in 2025.
He added that 467 bank accounts remain linked to unverified individuals with holders yet to be identified.
He noted that the N941.9 million currently frozen in the 467 bank accounts has been forfeited to the federal government.
He disclosed that the agency published the names of the 910 individuals suspected to have benefited from the purported fraud in two national dailies on March 18, 2026.
The Nigerian Maritime Administration and Safety Agency (NIMASA) has introduced the Blue Economy Accelerator Programme, a strategic initiative designed to identify, nurture, and accelerate innovative startups that will contribute to the sustainable growth of Nigeria’s marine and blue economy.
The Blue Economy Accelerator Programme is aimed at attracting young, vibrant minds with innovative ideas capable of transforming Nigeria’s maritime ecosystem.
Dr. Dayo Mobereola, Director-General of NIMASA, said that through the initiative, participants will receive structured business development support, industry mentorship, and technical guidance to convert promising concepts into viable ventures that address critical challenges and opportunities within the blue economy.
“The programme reflects NIMASA’s commitment to supporting the implementation of the vision of the Federal Ministry of Marine and Blue Economy in unlocking the immense potential of the blue economy by empowering young innovators, entrepreneurs, and technology-driven enterprises. We at NIMASA want to provide a platform for investors to identify young talents and invest in them”.
Mobereola, who commended the Minister of Marine and Blue Economy, Adegboyega Oyetola for codifying the Marine and Blue Economy Policy as a clear roadmap for the sector’s development, urged young Nigerians to embrace the programme which has the potential to transform raw talents into big investments in the maritime sector.
Applications are open to startups and innovators developing solutions across several strategic sectors, including marine waste management and the blue circular economy; aquaculture and sustainable fisheries; maritime technology and logistics innovation; ocean energy including wave, tidal, and offshore renewable energy; marine tourism and coastal recreation; marine biotechnology such as, ocean data and analytics; green shipping, including vessel decarbonization; smart port solutions; autonomous marine vehicles; biofouling prevention technologies; and coastal resilience through nature-based coastal defencesolutions.
The first phase of the programme is expected to attract a minimum of 150 high-quality applications from within and outside the country provided they are Nigerian citizens.
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