Nigeria Hotels Face Rising Power Costs, CEO Warns

The CEO of Panama Hotel in Nigeria has identified power costs as the most significant threat to the hospitality sector, citing that some hotels spend up to 50 % of their revenue on diesel fuel. The statement follows reports of chronic power supply shortages across the country, forcing hotels to rely on costly generator sets to keep operations running. According to the CEO, the high cost of diesel not only erodes profit margins but also limits the ability of hotels to invest in service improvements or competitive pricing. The issue is compounded by the fact that many hotels lack access to reliable grid electricity, making diesel an unavoidable expense. The warning highlights the urgent need for more stable power infrastructure to sustain the viability of Nigeria’s hotel industry.