Hotel investor seeks better financing for construction projects

The Chairman and CEO of HDV Nigeria Limited, Olufemi Okenla, has urged for improved financing for businesses, particularly in the construction and hospitality sectors. Speaking in Lagos, Okenla urged the government and banking sector to develop a project financing model that supports long-term investments. He complained about the current financing structure that places a heavy burden on private investors as banks often require repayment of loans before their projects generate revenue.

Okenla stated, "The financing system must reflect the country's developmental objectives." He highlighted that development banks in other economies offer discounted funding and repayment periods aligned with a project's cash flow, while in Nigeria, moratorium periods are not in place. He added, "Investors often pay substantial financing costs even before opening their projects."

Okenla revealed that HDV Nigeria Limited had initially planned to establish 10 mid-scale hotels within 15 years but has only been able to open two in 13 years due to funding and other challenges. The new Ibis Lagos Lekki, with 120 rooms and various amenities, is a response to the lack of internationally branded hotel rooms in Nigeria.

The facility is expected to create jobs, support local businesses, and strengthen Lagos' economic ecosystem.