FG Vows to Unlock Tourism Potential, Targets N7.2trn Contribution to GDP

• Says sector can rival, surpass oil as major revenue source for Nigeria

• Experts say country positioned to become Africa’s leading destination

Charles Ajunwa

As the world marks International Tourism Day today, the federal government has restated Nigeria’s tourism potential, saying it was positioning the sector as a game-changer for economic growth, targeting over N7.2 trillion contribution to its Gross Domestic Product(GDP) while  creating more than 2.5 million jobs by the end of 2025.

Minister of Art, Culture, Tourism, and Creative Economy, Hannatu Musa Musawa, who disclosed this to THISDAY, said tourism, given its added advantage of inexhaustibility, has the potential to rival and even surpass oil as a revenue source for Nigeria.

This year, the World Travel and Tourism Council projects that global travel and tourism would contribute approximately $11.7 trillion to the global economy, representing about 10.3 per cent of the world’s gross domestic product (GDP).

This sector, it said, as a significant employer, would support around 371 million jobs worldwide.

 Africa recorded a 12 per cent increase in tourism between January-June 2025 compared to the same period last year, the United Nations half year report on global tourism revealed recently.

Speaking further, Musawa, who said Nigeria could learn from the success of countries like Morocco, Kenya, and South Africa by developing diverse tourism products, identified multifaceted challenges such as lack of focused investment, inadequate and outdated infrastructure and security concerns, inconsistent policies, limited funding, economic instability like market fluctuations, environmental damage and negative perception of the country changing consumer behaviours as limitations to the transformation of these tourism potentials into actual realities.

According to the minister, “Tourism holds immense economic potential as a powerful catalyst for job creation, foreign exchange earnings, and infrastructure development, especially in emerging economies.

Nigeria’s tourism sector has huge economic potential and its projections, suggesting it could contribute over N7.2 trillion to the GDP and create more than 2.5 million jobs by the end of 2025 if properly harnessed.

“The sector stimulates demand across multiple sectors, including hospitality, transportation, retail, and cultural industries, thereby driving broad-based economic growth. Moreover, tourism’s ability to generate inclusive growth makes it a vital tool for poverty alleviation and economic diversification, positioning it as a key pillar for long-term sustainable development.

“While Nigeria possesses vast cultural and natural assets, multifaceted challenges such as lack of focused investment, inadequate and outdated infrastructure and security concerns, inconsistent policies, limited funding, economic instability like market fluctuations, environmental damage, and negative perception of the country, changing consumer behaviors currently limit the transformation of these tourism potentials into actual realities. 

“These factors, which impact revenue, operations, and consumer confidence, can be addressed, but it requires substantial government support, investment in sustainable practices and digital transformation, and improved collaboration between public and private sectors.

“These factors hinder the development of a competitive tourism sector in Nigeria. Addressing negative international perceptions of Nigeria as an unsafe environment is crucial for attracting more tourists and investors.

“Tourism is one of the largest employers of labour and is projected to create one out of every 10 jobs globally; more than the oil industry, and if properly developed and managed has the capacity to significantly contribute to foreign exchange earnings, which is vital for Nigeria’s economic stability,” Musawa said.

Speaking on the lessons from the success stories about tourism in some African countries, Musawa said “Nigeria can learn from the success of countries like Morocco, Kenya, and South Africa by developing diverse tourism products beyond cultural experiences, investing in infrastructure like improved airports and connectivity, fostering public-private partnerships, securing sustainable promotion funding and enhancing safety and security measures to build travellers’ confidence.

“While Kenya focuses on safaris and Morocco on cultural heritage, Nigeria has a rich tapestry of culture, historical sites, vibrant cities, and natural beauty, including beaches, waterfalls, diverse ecosystems, and the creative industries. There is also a focus on developing a wider range of products beyond established niches to attract diverse traveller segments.”

Responding to THISDAY’s question on today’s World Tourism Day, the minister said, “it is an opportunity to renew our commitment to making tourism a driver of sustainable transformation; one that nurtures our planet, empowers communities, and enriches lives.

“The theme for this year’s celebration is focused on people, inclusive growth and responsible travel. We all have influence and with that influence comes the responsibilities. My message is that to be conscious consumers, choose destinations and businesses that respect the environment and local cultures, create enabling environments that foster sustainable tourism through smart regulations, incentives, and international cooperation, and travel responsibly.”

Also, the Director General, National Institute of Hospitality and Tourism (NIHOTOUR), Dr. Abisoye Fagade, Founder of Akwaaba African Travel Market, Mr. Ikechi Uko, and Managing Director, Afrocultour Limited, Chuks Akamadu, all shared their views about tourism having the potential to rival oil as a revenue generation source.

 Fagade said: “Oil is finite and vulnerable to global price shocks, while tourism is sustainable, renewable, and people-driven.

 “Countries like Kenya, South Africa, and Morocco have shown that tourism can contribute significantly—sometimes above 10 per cent of GDP.

“Nigeria, with our natural diversity, cultural richness, gastronomy, and vast youth population, has far greater potential. But for tourism to rival oil, we must formalise the industry through registration, professional training, and certification. That is why NIHOTOUR is leading the charge on standardisation—ensuring that services are globally competitive and trustworthy.

“Tourism has the power to be one of Nigeria’s largest economic engines. It is a sector that naturally creates jobs—ranging from hotels, restaurants, and transport operators to tour guides, artisans, and cultural performers.

 “With proper registration, training, and standardisation, the industry can employ millions of young Nigerians, attract foreign exchange, and empower SMEs across every state.”

On his part, Uko stressed that most oil-producing nations like Saudi Arabia have transitioned to tourism and now make huge incomes.

 “Mexico was among the first to move to tourism long before UAE joined the league. Nigeria can get to that point very quickly with serious effort.

“All over the world, tourism is the biggest employer of labour. Even in Nigeria, hospitality and transport play a huge role in employment generation. The potential for Nigeria is huge.  It was estimated by Financial Derivatives that “Detty December”alone generated $75m in two weeks and is expected to double this year. All over Nigeria, the opportunities to scale these numbers exist from our local festivals and events,” he said.

Also, Akamadu, who shared the same view, said “Tourism is a renewable resource whilst oil is a non-renewable resource. For as long as heaven and earth remain, man shall continue to move from one place to another, unlike your oil reserves that can dry up in the foreseeable future. Apart from that, the world is hurriedly transitioning from fossil fuel to green energy.

“The implication is that the economic role of oil and gas is bound to diminish as the years roll by. That of course, explains why proactive countries like the United Arab Emirates, although rich in oil and gas, are glaringly prioritising tourism.”

Former Minister of Power, Works and Housing, Mr. Babatunde Fashola, recently said Nigeria has over 170 tourism assets that should be promoted globally.