NIHOTOUR Clarifies Compliance Exercise Incident At Federal Palace Hotel

The National Institute for Hospitality and Tourism (NIHOTOUR) has released a comprehensive statement addressing the recent compliance monitoring exercise at the Federal Palace Hotel & Casino on Wednesday, June 11, seeking to clarify events and reaffirm its commitment to due process and sector reform.

The statement comes amidst a report detailing an alleged “lockdown,” “thuggery,” “ransom demand”, and “brutalisation” of hotel staff during the exercise.

According to Barr. Chike Ukekwe, Director of Inspection and Enforcement at NIHOTOUR, the agency is legally mandated to regulate, train, and standardise personnel and operators within Nigeria’s hospitality, travel, and tourism sectors.

He explained that the ongoing nationwide compliance drive is a result of a thorough, structured process rooted in stakeholder consensus and guided by law.

Ukekwe detailed a series of consultations held between December 2024 and February 2025 with key stakeholders under the Federation of Tourism Associations of Nigeria (FTAN), including prominent bodies like the Nigeria Hotel Association, HOFA, NANTA, and NATOP.

“Following these engagements,” Ukekwe stated, “official demand letters were issued to all identified hotels and restaurants, including Federal Palace Hotel & Casino, on March 4, 2025.”

He added that final demand letters were dispatched in April, granting an additional 30 days for voluntary compliance, and by May 2025, contravention notices were served to non-compliant establishments, offering one last opportunity to regularise their status.

Ukekwe emphasised that these efforts were “consistent, professional, and well-documented,” with copies of letters sent to Federal Palace Hotel & Casino available for review.

Addressing the presence of law enforcement, NIHOTOUR clarified that it is “standard operational protocol for federal enforcement exercises to be accompanied by law enforcement officers” to maintain order, ensure compliance, and protect all parties involved.

Ukekwe, “regrettably” acknowledged a “physical altercation” during the Federal Palace visit, which reportedly occurred after a staff member allegedly “tore the attire of a police officer, leading to provocation.”

He confirmed the incident is “currently under review,” with disciplinary and legal steps to be taken if necessary, reiterating that NIHOTOUR “does not condone violence and insists on professionalism and mutual respect.

“Regarding claims of operational disruption, Ukekwe countered, “Contrary to some claims, the NIHOTOUR team did not shut down the hotel or halt its operations.”

He maintained that the team was on site solely to conduct inspection, verification, and enforcement procedures as mandated by law.

On the contentious issue of payments, NIHOTOUR offered a stark clarification regarding the alleged ₦2.5 million and ₦100,000 paid by Federal Palace Hotel & Casino.

“No valid payment was made,” Ukekwe asserted.

He explained that during the visit, “the hotel’s representatives initiated a transfer which was later found to be invalid or unfulfilled—a dud transaction,” which is now “under formal scrutiny.”

Ukekwe elaborated on the fee structure, stating that ₦2.5 million is the “established non-compliance fee for large-scale operators who fail to comply after multiple official notifications,” while ₦100,000 is a “processing and documentation fee for temporary compliance paperwork.”

He stressed that “these amounts are standard, not arbitrarily imposed, and only arise where operators fail to comply voluntarily despite multiple warnings.”

NIHOTOUR commended other establishments such as Eko Hotel, Sojourner Hotel, Marriott Hotel, Radisson Blu Hotel VI, Black Diamond Hotel, and Four Points By Sheraton for their cooperation, urging all stakeholders to “embrace dialogue, not disruption.”

Ukekwe highlighted that compliance issues were resolved peacefully on-site at most hotels after management assurances.

In conclusion, NIHOTOUR maintained it is “not on a witch-hunt” but rather focused on “reforming an industry that is vital to Nigeria’s economic future.”

The agency’s goal, according to Ukekwe, is to “raise standards, ensure professionalism, and protect both operators and consumers,” reiterating its commitment to “collaboration with all stakeholders” and a “transparent, accountable, and growth-oriented hospitality, travel, and tourism sector under the Renewed Hope Agenda.”