Oyo moves to bring hotels, lounges into tax net

The Oyo State Government on Thursday announced plans to bring all hospitality businesses in the state into the tax system as part of efforts to improve data collection, boost revenue generation and strengthen security coordination across the sector.

The state Commissioner for Culture and Tourism Development, Wasiu Olatubosun, announced this at the state Tourism and Hospitality Conference held at the Local Government Staff Training Hall, Secretariat, Agodi, Ibadan, in conjunction with ITC Advisory Services.

Olatubosun said, “The majority of hospitality operators in the state are yet to register with the government, while some registered businesses do not remit their dues regularly, a situation that is significantly affecting the state’s revenue generation.

“The renewed engagement with stakeholders is the first phase of a three-stage process comprising identification, cooperation and enforcement, with the enforcement stage expected to commence in October 2026.”

He urged hospitality businesses to take advantage of the ongoing engagement and comply with the requirements of the state government.

Olatubosun also enjoined hospitality businesses to submit monthly figures of customers who patronise their facilities to help populate data at the Bureau of Statistics and enhance security coordination across the state.

Also speaking, the lawmaker representing the Oyo East/Oyo West constituency, Olorunpoto Rahman, reiterated the commitment of the state House of Assembly to partnering with the executive arm of government to build a tourism sector that is secure, data-driven and business-friendly.

He said, “The Governor Seyi Makinde-led administration is deliberate about maintaining order in the state,” noting that “tourism is one of the development plans receiving attention.

“The House of Assembly will continue to support the Ministry of Culture and Tourism in its efforts to develop the sector,” urging stakeholders to work together towards making Oyo a preferred tourism destination

Speaking on the digital initiatives being proposed for the sector, the Director of ITC Advisory Services, Olabode Ajetunmobi, said Oyo had the potential to become one of Nigeria’s strongest tourism and hospitality destinations.

He said, “The proposed Oyo Guest Identity Verification System and Oyo Booking Platform are designed to support the development of a more organised, secure and competitive hospitality sector.

“The initiatives are not intended to put pressure on hotels but to help licensed and compliant establishments become more visible, safer, more trusted and competitive. The initiatives will provide opportunities for hotels to benefit from state-backed digital visibility, guest identity verification, safer hotel operations, discounted outdoor advertising, health insurance support for hotel workers, discounted Property Management System access through Stay Flow, reliable internet support and improved access to tourists, visitors and corporate guests.

“Compliance should not be viewed as punishment, but as a pathway to access, visibility, customers, support and growth.

“There were also presentations on security and public safety compliance in the hospitality sector, continuity and sustainability, as well as revenue generation and opportunities for increased revenue in the hospitality industry.”

The interactive session, which brought together stakeholders in the hospitality sector, including hotels, lounges, nightclubs, eateries and other related businesses, focused on strengthening tourism and hospitality for sustainable growth.

Stakeholders also raised various questions and concerns bordering on compliance, revenue generation, security, data collection and the general development of the sector.

The Chairman of the Hoteliers Association, Ayodele Ogundele, said improved collaboration between the government and operators would create a situation beneficial to all stakeholders.