TRENDING VIDEO: Popular hotel owner laments rising diesel costs, calls energy expenses “suicidal”
Social media has been abuzz following a viral video showing Femi Okenla, owner of the Ibis Hotels franchise in Lagos, expressing concern over the rise in fuel costs.
In a podacst with former Minister of Finance, Mrs. Kemi Adeosun, Okenla highlighted the financial strain caused by the increasing price of diesel needed to run the hotel.
He said, “if I tell you what we pay monthly on energy, it’s suicidal. You wouldn’t even believe it. For Kija Hotel alone, we’re paying as much as $35,000 a month on energy. That’s the truth, and it’s a fixed cost. Fixed whether you like it or not, whether you’re at full occupancy or not.
“And it’s all because of this “Band A” thing. Sometimes you wonder where government policies are coming from. Are they really talking to entrepreneurs?
“I remember before Band A, we were paying about 11 million naira monthly for electricity, excluding diesel cost. When Band A came, it jumped from 11 million naira to 49 million naira — with no change in usage. This is government action. These are costs you can’t pass on. The customer cannot absorb it. It simply can’t be absorbed.”
Click the link to watch the video.