(Ecofin Agency) - Within the past 10 years, foreign investments in Nigeria’s hospitality sector have slumped by a whopping 98%, data from the Central Bank of Nigeria (CBN) reveals.

From up to $45 million in 2007, the investments plunged to about $750,000 in 2016. This according to the apex bank was due to a combination of the 2014 Ebola breakout, threat of terrorism, recession and lower government expenditure. These have affected hotels performance in the country.

In Lagos, rates of occupancy in hotel rooms have slumped below 40% with an average tariff of about $90 per night. Foreign investors are discouraged by the trend which is recorded in the various parts of Nigeria. Asides this, the performance has also been impaired by issues related to management fees, development cost and sharing formula that scare foreign investors.

Nigeria expects to get out of the recession with its 2017 budget which focuses on infrastructure development. This, paired with a more flexible tax regime and the various incentives implemented by the CBN to improve business environment for investors should attract more of them to the country.