Ibis Lekki Opening Rekindles Debate Over Funding for Private Projects

Iyke Bede

The recent opening of Ibis Lagos Lekki has renewed concerns over the difficult funding environment facing private-sector projects in Nigeria.

Ibis, an international hotel franchise, has opened its second property in Lagos, years after its first property was established in Ikeja in 2013. The 120-room hotel is located in the heart of Lekki, one of the state’s fastest-growing business and residential areas.

Chairman of HDV Nigeria Limited, Olufemi Okenla, said efforts to drive private-sector investment would depend partly on creating funding conditions that give businesses enough time to develop their projects.

“The funding system in the country is not favourable, and I am happy Her Excellency agreed with me. But we need to have a discussion around the funding aspect of projects, especially around the moratorium period, because if the government is trying to encourage entrepreneurship, and the private sector is disconnected, there hardly will be that growth we desire in the country,” he said.

The development also presented construction challenges and additional cost with piling required for the foundation due to the nature of the Lekki terrain.

Speaking at the opening, the Secretary to the Lagos State Government, Barrister Bimbola Salu-Hundeyin, who represented the state government, described hospitality as an important part of Lagos’ economy.

“For us in Lagos, hospitality isn’t simply about hotels, restaurants and tourism. It is an integral part of our economic ecosystem. It supports businesses and investments, creates employment, strengthens our entertainment and creative industries, promotes tourism, facilitates conferences and events, and gives millions of business and leisure travelers a first and lasting impression of our city.”