Olufemi Okenla, CEO of HDV Nigeria Limited, has called for improved development financing for construction and hospitality projects in Nigeria.
The request highlights a systemic gap in the Nigerian financial market where developers struggle to find sustainable capital for large-scale infrastructure. Without viable financing options, the growth of the hospitality sector may stall, limiting urban development and tourism potential in key economic hubs.
Okenla serves as the Chairman and CEO of HDV Nigeria Limited, the firm that owns two Ibis hotels located in the Ikeja and Lekki areas of Lagos [1]. These properties represent significant investments in the city's hospitality landscape, yet the company's leadership said the broader environment for construction funding remains restrictive.
The call for reform focuses on the need for financing that is specifically tailored to the timelines and risks associated with construction. Traditional banking models often fail to account for the long lead times required before a hotel or commercial building becomes profitable, a gap that hinders new entrants and expansion.
By advocating for more flexible and accessible funding, Okenla aims to address the lack of viable options currently available to developers in the country. The goal is to create a financial ecosystem that supports the physical expansion of the hospitality industry across Nigeria.
The current lack of specialized development funding creates a barrier for investors who wish to scale operations. This financial bottleneck affects not only the owners of the projects, but also the local labor markets and the overall quality of tourism infrastructure in Lagos and beyond.
“Olufemi Okenla has called for improved development financing for construction and hospitality projects in Nigeria.”
The push for specialized construction financing indicates that Nigeria's hospitality growth is currently limited by capital accessibility rather than a lack of demand. If financial institutions do not adapt their lending models to accommodate the long-term nature of real estate development, the sector may see a slowdown in modernization and a reliance on more expensive, short-term equity rather than sustainable debt.
