Tourism Tourism Funding in Nigeria 2025: Budgets, Projects & Partnerships Mercy Idoko IfunanyaAugust 12, 202501.1K views Tourism is a growing part of Nigeria’s economy. It creates jobs, boosts local businesses, and builds the country’s image. In 2025, tourism funding in Nigeria is in focus. The federal government set aside ₦5.24 billion for recurrent costs and ₦895 million for capital projects. States like Lagos, Bayelsa, and Cross River are also funding new attractions and events. But experts say the sector needs far more to reach its full potential. Without substantial budgets, partnerships, and private investment, many projects will slow down or never start. Federal Budget Allocations for Tourism in 2025 In 2025, the Federal Ministry of Tourism got ₦5,240,845,125 for recurrent costs and ₦895,148,650 for capital projects, according to the 2025 Appropriation Bill. Compared to the ₦49.74 trillion national budget, this is less than 0.02%, which is a tiny share. Recurrent funds cover salaries, administration, and daily operations. Capital funds go to projects like site upgrades, visitor centres, and promotion campaigns. But the amount is too small for major infrastructure without extra support from other ministries, states, or investors. Tourism spending also appears in other ministry budgets, making it harder to track the total figure. For example, access roads to attractions may be funded under works, while festivals may fall under culture. A Tourism Ministry official in early 2025 said, “Tourism funding in Nigeria must be seen as an investment, not just a cost.” With low allocations, partnerships with states, banks, and private investors are now essential to grow the sector. State-Level Tourism Budgets in 2025 Tourism funding in Nigeria is not only a federal matter. States also set aside money for site development, events, and promotion. However, the size and focus of these budgets vary widely. Wealthier or tourism-focused states tend to invest more. Examples from 2025 state budgets: Bayelsa State: The 2025 Approved Budget includes capital spending for tourism, culture, and hospitality projects. These cover waterfront beautification, festival support, and tourism infrastructure in Yenagoa. Lagos State: The 2025 budget allocates funds for destination marketing, upgrading event centres, and maintaining beach access roads. Lagos also invests in hosting major cultural and sports events to attract visitors. Cross River State: Known for the Calabar Carnival, the state’s 2025 budget funds carnival logistics, event security, and tourism site maintenance, including Tinapa and Obudu Mountain Resort. Funding levels vary by state priority and revenue capacity. States with strong event brands, like Lagos and Cross River, tend to spend more on marketing and event infrastructure. Some states focus on small-scale site improvements, while others commit to extensive tourism infrastructure. Tracking state spending is harder because not all publish detailed line-item budgets online. State budgets matter because they often cover the “last mile” infrastructure that makes attractions accessible. Without this support, even federally funded projects can struggle to attract visitors. Public-Private Partnership (PPP) Tourism Projects in 2025 With federal and state budgets for tourism often limited, Public-Private Partnerships (PPPs) have become a meaningful way to fund and deliver large-scale projects in Nigeria. These agreements allow governments to work with private investors to build, upgrade, or manage tourism facilities. Examples of Successful Tourism PPPs in Nigeria 1. Lekki Conservation Centre, Lagos While initially developed by the Nigerian Conservation Foundation (NCF), the centre’s continued success has been supported through partnerships with private sponsors and corporate bodies. This has helped in upgrading facilities such as the canopy walkway, picnic areas, and ecotourism programmes. 2. Tinapa Business and Leisure Resort, Cross River State This ambitious project, though facing challenges, was initially developed as a PPP between the Cross River State Government and private investors. It was designed to attract both local and international tourists, offering shopping complexes, hotels, and entertainment facilities. 3. National Theatre, Lagos Redevelopment The Federal Government signed an agreement with the Central Bank of Nigeria (CBN) and the Bankers’ Committee to transform the National Theatre into a creative and tourism hub. This partnership involves a complete upgrade of the facility and surrounding infrastructure, which will significantly boost cultural tourism. 4. Ojude Oba Festival Sponsorships Corporate sponsorships, such as those from telecom companies like Globacom, have turned traditional cultural festivals into well-funded tourist attractions. This draws in large numbers of local and international visitors each year. 5. Ikogosi Warm Springs Resort Upgrade – Ekiti State Operated under a PPP arrangement to improve lodging facilities, event hosting, and site marketing. The state provides land and basic infrastructure, while the private partner handles operations. 6. Hotel and Hospitality Pipeline Nigeria’s hotel market is attracting private investment from local and international groups. A 2025 hotel development report by W Hospitality Group shows Lagos and Abuja leading the pipeline. However, PPPs require clear agreements, strong legal frameworks, and investor-friendly policies. Without these, projects risk delays or disputes, which can hurt tourism growth. International Development Agency Funding There are international organisations that help with tourism funding in Nigeria. World Bank Projects The World Bank has supported tourism-related infrastructure in Nigeria by funding access roads to cultural and natural sites. They also offer technical guidance for ecotourism planning and creating capacity-building programs to increase local tourism standards. UNESCO and Cultural Heritage Grants Nigeria is home to two UNESCO World Heritage Sites, which are Sukur Cultural Landscape and Osun-Osogbo Sacred Grove. These sites benefit from UNESCO-led programs that promote preservation, community participation, and cultural documentation. Official UNESCO listings for these sites can be found on the World Heritage List page. Foreign Direct Investment (FDI) FDI plays a growing role in Nigeria’s tourism, especially in the ecotourism and hospitality sectors. Foreign investors are increasingly involved in hotel developments and resort upgrades. This brings both capital and global management expertise to the tourism industry. Community-Based Tourism Funding in Nigeria Communities are also part of tourism funding in Nigeria. Here’s how they do it: Cooperatives and Local Investment Groups In many regions, community savings groups and cooperatives pool local resources to support small-scale tourism initiatives. They help in building visitor centres, maintaining trails, or organising cultural tours. These grassroots efforts help keep tourism revenue within local economies. NGO and Social Enterprise Support Organisations like the African International Documentary Festival Foundation (AFIDFF) invest in promoting local heritage. They work with communities to document and restore landscapes such as the Sukur Cultural Landscape and Gashaka Gumti National Park. This helps support local storytellers and guides. READ MORE Why Privatising Nigeria’s Tourist Sites Could Be Key to Unlocking Their Potential Top 5 UNESCO Heritage Sites in Nigeria & Why They Matter Cross River State Reclaims Obudu Resort, Plans Major Renovation Challenges in Accessing Tourism Funding in Nigeria Accessing funding for tourism in Nigeria is often not straightforward. It comes with so many challenges. These challenges include Limited awareness: Many tourism business owners are unaware of the funding opportunities available from government schemes, banks, or international organisations. Complex application processes: Grant and loan applications usually require detailed proposals, feasibility studies, and collateral, which many small operators struggle to provide. Bureaucratic delays: Approvals for funding, especially from public institutions, can be slow, discouraging investors and delaying projects. Lack of sector-specific funding: Tourism often competes with other industries for general business loans, and there are few dedicated tourism financing schemes in Nigeria. Recommendations for Improving Tourism Funding Access To strengthen tourism funding in Nigeria, several steps can be taken. Some of these include: Awareness campaigns: Government and tourism bodies should actively publicise available grants, loans, and incentives. Simplified processes: Loan and grant applications should be made more accessible, especially for small and medium-sized enterprises (SMEs). Dedicated tourism funds: Establish tourism-specific funding programs to address the unique needs of the industry. Public-private partnerships: Encourage collaboration between the private sector and government to pool resources for tourism development. Capacity building: Train tourism operators on proposal writing, business planning, and financial management to improve their chances of securing funding. Conclusion Tourism funding in Nigeria is essential for growing the industry and attracting more visitors. With better investment, improved infrastructure, and supportive policies, the sector can create jobs and boost the economy. Stakeholders, both public and private, should work together to provide the right resources. If you are a business owner, investor, or policymaker, consider supporting tourism funding in Nigeria today. Your contribution can help shape the industry’s growth. Showcase Nigeria Through Your Lens – Join Our Open Call for Creators Are you a photographer, videographer, or content creator passionate about capturing Nigeria’s beauty, from fashion runways and cultural festivals to tourist landmarks and local events? Our Open Call for Content Creators in Nigeria is your opportunity to get featured, collaborate, and bring authentic Nigerian stories to life. Whether you’re into travel, lifestyle, or visual storytelling, we want to see Nigeria through your eyes. Explore more stories on tourism in Nigeria – from cultural gems to hidden travel destinations. FAQs 1. What Is Tourism Funding In Nigeria? It is the financial support given to promote and grow the tourism sector in the country. 2. Why Is Tourism Funding Important? It helps improve infrastructure, attract tourists, and create jobs. 3. Who Can Provide Tourism Funding? The government, private investors, NGOs, and international bodies can all provide tourism funding in Nigeria.