- Court Orders Refund Of Fees Extorted From Members Under Duress
- Awards ₦10m Damages Against Agency
The Hotel Owners and Managers Association of Lagos (HOMAL) has hailed its victory at the Federal High Court, declaring that the judgment has provided its members with legal protection against what it described as persistent harassment, forceful enforcement and illegal fee collection by the National Institute for Hospitality and Tourism (NIHOTOUR).
The court, in its judgment in Suit No. FHC/L/CS/906/2025, declared key provisions of the NIHOTOUR (Establishment) Act, 2022, relating to the registration, certification and standardisation of hospitality and tourism personnel operating within Lagos State unconstitutional, illegal and beyond the powers of the federal agency.
It also ordered NIHOTOUR to refund payments collected from HOMAL members during its enforcement operations, awarded ₦10 million in damages against the institute in favour of the association and issued a perpetual injunction restraining NIHOTOUR and its agents from carrying out forceful enforcement, arrests, detention and fee collection under the disputed provisions.
Speaking at a press conference on Monday, October 19, 2026, the HOMAL president, Chief Samuel Alabi said the judgment had vindicated the association’s longstanding objections to NIHOTOUR’s attempt to exercise regulatory powers over hospitality businesses operating within Lagos State.
He maintained that the dispute was not about opposition to professional training or improved standards in the hospitality industry, but about what it considered an unconstitutional expansion of the federal agency’s powers.
According to Alabi, the court affirmed that the Lagos State Hotels Licensing Authority Law, 2010, governs the regulation of hotels and tourism establishments in the state.
The judgment also held that NIHOTOUR lacked the constitutional authority to regulate or revoke operating licences issued to the association’s members by the Lagos State Government.
Alabi said the ruling was particularly significant because it followed months of tension over the institute’s efforts to compel hotel operators and their principal officers to register with it.
How The Dispute Escalated
Tracing the background to the legal battle, Alabi said the controversy originated from provisions of the NIHOTOUR Establishment Act, 2022, which it argued encroached on the constitutional responsibilities of state governments.
The association explained that NIHOTOUR was created in 1987 following a tripartite agreement involving the United Nations Development Programme, the International Labour Organization and the Nigerian Government.
However, it said concerns over the institute’s legal status and regulatory reach resurfaced in 2017 when stakeholders were invited to the House of Representatives to review a bill seeking to establish NIHOTOUR by law.
According to HOMAL, industry stakeholders objected to provisions that appeared to confer on the institute powers to regulate hospitality businesses, register and certify personnel, and prescribe manpower requirements across the sector.
The association alleged that despite the objections raised during the legislative process, the contentious provisions were retained in the 2022 Act.
While acknowledging the need for NIHOTOUR to perform its training functions, HOMAL argued that the institute could not use those responsibilities to assume regulatory powers over businesses licensed under state laws.
It said it had warned officials of the agency in 2022 against implementing the disputed provisions to avoid a prolonged legal confrontation.
Alleged Raids, Forced Payments
The association alleged that the dispute intensified after the current Director-General of NIHOTOUR, Aare Abisoye Fagade assumed office in late 2024 and began implementing provisions that had previously remained largely unenforced.
HOMAL said the institute initially invited chief executives of member companies to Abuja at short notice before issuing a further demand in March 2025 for the immediate registration of the companies’ chief executives and heads of departments.
Following legal consultations, the association said it wrote to NIHOTOUR on March 10, 2026, challenging the demands and warning against the enforcement of the disputed provisions.
It alleged that the agency ignored its objections and subsequently sought assistance from the Nigerian Immigration Service and the police to compel compliance.
With the disagreement unresolved, HOMAL instituted the suit at the Federal High Court in May 2026, seeking judicial intervention against the enforcement measures.
The association, however, alleged that the legal action did not immediately halt NIHOTOUR’s activities.
According to HOMAL, some members’ business premises were invaded and shut down, with affected businesses allegedly required to pay ₦2.5 million to a company identified as NIHOTOUR Training, Research and Consultancy before reopening.
The association also alleged that a staff member of one of its members sustained an injury that resulted in the loss of sight in one eye during an enforcement operation.
HOMAL said it eventually obtained a court order to halt the enforcement activities.
The allegations formed part of the association’s account of the dispute at the press conference.
Court Orders Refunds, ₦10m Damages
In its judgment, the court granted all the reliefs sought by HOMAL, declaring the disputed provisions relating to the regulation, registration and certification of hospitality personnel operating wholly within Lagos State unconstitutional.
It further declared enforcement actions taken by NIHOTOUR against the association’s members in Lagos under the contested provisions illegal, null and void.
The refund order requires NIHOTOUR to return payments made by HOMAL members pursuant to the enforcement operations, while the ₦10 million award provides additional monetary relief to the association.
The perpetual injunction restrains the institute and its agents from forceful enforcement, arrests, detention and fee collection under the disputed provisions of the Act.
HOMAL said the orders would protect its members from further intimidation and financial pressure arising from the enforcement dispute.
‘We Are Not Against Higher Standards’
The association stressed that its legal challenge should not be interpreted as resistance to professional development or efforts to improve service delivery in the hospitality industry.
It said its members had invested substantial personal and corporate resources in their businesses and remained committed to improving facilities, staff competence and operational standards.
HOMAL argued, however, that the pursuit of improved standards must be conducted within the limits of the law and the constitutional division of responsibilities between federal and state authorities.
It questioned the basis for allowing a federal agency to regulate hospitality establishments operating within Lagos State when the state has its own hotel licensing framework.
For the association, the central issue is whether NIHOTOUR can rely on its establishment law to exercise regulatory powers that HOMAL considers inconsistent with the Constitution and existing Lagos legislation.
Association Prepares For Possible Appeal
HOMAL acknowledged that NIHOTOUR could challenge the judgment before a higher court but maintained that the ruling remains operative unless set aside through the appropriate judicial process.
The association also disclosed that NIHOTOUR had separately instituted proceedings against 16 hotels in Abuja, adding that six of its members had been served with court papers in connection with that case.
It said it was defending the interests of the affected members in the Abuja proceedings.
Reassuring its members, HOMAL President said the association is prepared to defend the Lagos judgment against any appeal and urged hotel operators to continue their businesses without fear of harassment by NIHOTOUR or other federal agencies acting beyond their lawful authority.
