Nigeria’s Tourism Ambition: Bridging Infrastructure Gaps to Compete with Oil

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Nigeria, situated in the heart of West Africa, finds itself at a crucial juncture. For decades, crude oil has been the undisputed lifeblood of its economy. This resource has fuelled nascent development, built cities, and dictated national fortunes. Still, this dependency has been a Faustian bargain, breeding endemic volatility tied to global price shocks, stifling other sectors, and inflicting deep, persistent environmental scars, particularly in the Niger Delta.

Now, as the world accelerates its pivot away from fossil fuels, driven by the dual engines of climate commitments and the rise of renewable technologies, Nigeria’s economic bedrock is fracturing. With oil revenues facing a future of profound uncertainty, a critical question echoes from the ministerial chambers in Abuja to the boardrooms of Lagos: Can tourism, an industry built on experience rather than extraction, step in as the nation’s next economic powerhouse?

The potential is undeniable. Nigeria possesses a staggering inventory of assets: a rich, diverse tapestry of cultural heritage spanning hundreds of ethnic groups; stunning, raw natural landscapes, from the waterfalls of Erin Ijesha to the vast savannas of Yankari National Park; and the chaotic, infectious energy of vibrant urban centres like Lagos, the epicentre of the global Afrobeats phenomenon.

Yet realising this vision hinges on a huge undertaking. It demands bold and consistent policy reforms, a national-level commitment to bridging monumental infrastructure gaps, and a climate that can attract billions in strategic, long-term investment. This feature analyses the complex forces shaping tourism’s trajectory, drawing on the pivotal developments and prevailing sentiments of late 2025.

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The “New Oil” Debate: Rhetoric vs. Reality

The refrain “tourism is the new oil” has become a popular mantra among Nigeria’s policymakers. The logic is compelling. Ordeal that discourages all but the most adventurous travellers, investments by major players such as Shell and ExxonMobil, and tourism offer an alternative path. People champion this industry for its potential to diversify the economy, generate widespread employment, and promote sustainable, inclusive development.

Former Minister of Culture and Tourism, Frank Nchita Ogbuewu, famously asserted that tourism, if properly harnessed, could rival or even surpass oil in revenue generation. People have consistently echoed this sentiment. Otunba Olusegun Runsewe, Director-General of the National Council for Arts and Culture, has long envisioned tourism as the next great revenue frontier as oil’s dominance inevitably diminishes. More recently, the former Tourism Minister, Lola Ade-John, has championed the sector as a viable successor, potentially surpassing oil and gas in its long-term contribution to the national economy.

But is this optimism grounded in reality, or is it a convenient political narrative?

Economists caution that the comparison, while useful for inspiration, is flawed. Oil provides massive, high-value foreign exchange earnings with a relatively low direct employment footprint. Tourism is the inverse: it is a high-volume, service-based industry with a much higher “multiplier effect.” A dollar spent by a tourist in a local hotel, on a guided tour, or in a craft market circulates more deeply within the local economy, creating jobs for guides, drivers, chefs, artisans, and retailers.

The true goal, therefore, may not be to replace oil’s revenue dollar-for-dollar, but to replace its role as the nation’s primary employer and source of sustainable economic activity. In direct job creation, tourism already has the potential to outperform the capital-intensive oil and gas sector vastly. The challenge is to convert that activity to the scale of government revenue and foreign exchange earnings to which Nigeria has become accustomed.

 

Forging a New Framework: Policy in Motion

To pivot an entire economy, talk must translate into tangible policy. The Federal Ministry of Art, Culture, Tourism, and Creative Economy is spearheading a series of reforms intended to signal a new era.

A clear sign of this ambition was Nigeria’s hosting of the 68th United Nations World Tourism Organisation (UNWTO) Regional Commission for Africa in 2025. This event was a deliberate strategic move to reposition “Brand Nigeria” on the global stage, moving the narrative away from security challenges and towards cultural richness and investment opportunity.

Domestically, the most notable event is the ongoing review of the National Cultural Policy, the first substantial update in nearly four decades. This is not merely bureaucratic housekeeping; it is the foundational step for unlocking heritage tourism. A modernised policy promises better funding and management for national museums (crucial, given the ongoing return of the Benin Bronzes), the restoration of historical sites such as the Sukur Cultural Landscape, and a framework to support the myriad local festivals that form the backbone of Nigeria’s cultural appeal.

This builds on the Nigerian Tourism Development Authority (NTDA) Act of 2022. This legislation was critical, repealing the outdated 1992 act and transforming the sector’s governing body from a simple parastatal into a powerful development agency. The NTDA now has a mandate not only to regulate but also to actively promote, partner with, and incentivise. The act also makes provision for a Tourism Development Fund, envisioned as a pool of public and private capital to de-risk investment in new projects.

 

The Gaping Chasm: Infrastructure and Security

Deep-rooted, systemic deficiencies severely hampered Nigeria’s tourism sector, despite legislative advancements. These are the practical barriers that deter visitors and stifle growth far more than any lack of attractions.

The most glaring issue is infrastructure. Poor road networks are legendary. A journey to a world-class attraction like the Obudu Mountain Resort can be an arduous, bone-jarring ordeal, discouraging all but the most adventurous travellers. While major arteries like the Lagos-Ibadan expressway see improvements, the “last mile” roads to tourist sites are often neglected. Intercity transport remains unreliable, and while major airports in Lagos and Abuja have seen modernisation, regional airports that need to create tourist circuits are usually underserved and inefficient.

Beyond creation is the pervasive “poor maintenance culture”. Nigeria excels at launching new projects but struggles with an institutionalised approach to upkeep. This means newly built resorts can fall into disrepair, and historical sites suffer from neglect, threatening the very investments made and degrading the visitor experience. Icons like Zuma Rock, a majestic natural landmark, remain largely unmonetised. At the same time, unique architectural gems like Kajuru Castle, a privately built fantasy castle attracting adventure seekers, highlight the potential of private vision but also its isolation.

Compounding these gaps are persistent security concerns. While Boko Haram’s threat in the far northeast is geographically contained, the rise of banditry and kidnapping-for-ransom on key highways in other regions poses a significant threat. Such uncertainty directly impacts travel advisories, insurance costs, and the fundamental perception of safety, which is non-negotiable for mainstream tourism.

Finally, a lack of accurate tourism data, environmental degradation at potential ecotourism sites, and insufficient (or poorly targeted) marketing exacerbate the issues. The Federal Executive Council’s approval of the Creative and Tourism Infrastructure Company (CTICo) is a direct attempt to address these gaps through PPP models, fostering projects that create jobs. However, experts, speaking at events around World Tourism Day 2025, have been clear: without urgent, tangible action on security and basic infrastructure, these ambitious policies will remain on paper.

 

Green Shoots: Investment and Emerging Trends

On a brighter note, investment trends are gaining momentum. Projections for the sector’s revenue are $3.45 billion in 2025, with an annual growth rate of 10.07%. Despite the obstacles, the industry is laying a commercial foundation.

The hotel market is a key barometer. International brands like Marriott, Hilton, and Radisson Blu are expanding their footprints, signalling long-term investor confidence. This expansion is crucial for raising standards and capacity.

A powerful and unique driver is diaspora tourism. This trend is most visible in the “Detty December” phenomenon, a seasonal surge where tens of thousands of Nigerians from the diaspora return for the holidays. This is no longer just a family reunion; it is a full-blown cultural and economic event. It drives a seasonal boom in hospitality, events, and retail, built around Afrobeats concerts, fashion shows, and high-energy nightlife. “Detty December” serves as a crucial proof-of-concept, showcasing a high-spend, resilient market that remains unaffected by the country’s reputational challenges.

Nigerian officials cite global benchmarks, such as Turkey’s staggering $61 billion from 62 million visitors in 2024, as inspiration for the scale of ambition required. The World Travel & Tourism Council’s 2025 report on Nigeria underscores this recovery and its potential, emphasising the sector’s future contributions to job creation and GDP.

 

The Verdict: A 15-Year Marathon, Not a Sprint

So, can tourism truly become Nigeria’s next oil?

The answer, as of late 2025, is a qualified and cautious “yes.” But it will not happen overnight. With oil’s future uncertain, diversification is an existential imperative, and tourism, alongside agriculture and the digital economy, tops the list of sustainable alternatives.

Experts suggest a realistic timeline is 10 to 15 years for the sector to rival oil’s economic impact, if, and only if, the deep-seated challenges are addressed. Strategic partnerships will be key. This means overcoming infrastructure gaps while leveraging Nigeria’s immense soft power, particularly the global reach of Nollywood and Afrobeats.

Nigeria’s tourism sector holds immense, undeniable promise. By 2025, the critical policy reforms will have finally laid the groundwork, but to build a skyscraper, the foundation must be unshakeable. The nation must now accelerate the difficult work of creating that foundation, securing its highways, paving its roads, and ensuring its attractions are safe and well-maintained.

With sustained political will and intelligent private-sector engagement, tourism could one day match oil’s revenues and foster a more resilient, inclusive, and vibrant economy, preserving Nigeria’s culture and environment for generations to come.

 

Frequently Asked Questions (FAQs) and Answers

What are the main policy reforms in Nigeria’s tourism sector in 2025?

Key reforms include reviewing the National Cultural Policy and the 2022 Nigerian Tourism Development Authority Act and developing a strategic plan focused on cultural assets, infrastructure, and capacity-building in creative industries.

Why is infrastructure a major gap in Nigeria’s tourism?

Issues such as poor roads, inadequate airports, neglected sites, and security concerns make attractions hard to reach, deterring tourists and limiting growth potential.

What investment trends are emerging in Nigerian tourism?

Trends include growth in ecotourism, heritage sites, hotels, and diaspora events like Detty December, with projected revenues reaching $3.45 billion in 2025 and a 10% annual growth rate.

Can tourism really replace oil in Nigeria’s economy?

While challenging, experts believe it could rival oil in 10-15 years through diversification, job creation, and sustainable development, provided gaps are addressed.

How does Nigeria’s tourism compare to global benchmarks?

Compared to Turkey’s $61 billion from tourism in 2024, Nigeria’s sector is nascent but has similar potential in cultural and natural attractions if investments scale up.

What role does sustainability play in Nigeria’s tourism future?

Recent laws emphasise eco-friendly practices, protect sites from degradation, and promote responsible travel to ensure long-term viability.