Court Varies Injunction Against Lagos’ Hotel Law


The Federal High Court sitting in Lagos, Monday, varied a restraining order it earlier gave, stopping the implementation of the Hotel Occupancy and Restaurant Consumption Law. Justice Mohammed Aikawa varied the order sought by the counsel to the Lagos state government, Lawal Pedro, senior advocate. Pedro prayed the court to lift the order on the implementation of the old Hotel Occupancy and Restaurant Consumption Law (2015), while similar restriction on the newer version promulgated in 2017 subsists.

Olasupo Sashore, who appeared for the plaintiffs – the Registered Trustees of Hotel Owners and Managers Association – did not object to Pedro’s request. He told the court he met with Pedro and had agreed the restriction on the older law be lifted.

In his ruling, Justice Aikawa said: “An Order is hereby made, varying the orders made on March 21, 2018.

“The variation shall be to the extent that the restraining orders against the first defendant from implementing the Hotel Occupancy and Restaurant Consumption Laws of Lagos State, be expunged from the said order, while retaining the restraining orders on Hotel Occupancy and Restaurant Consumption (Fiscalisation) Regulations 2017.”

The plaintiffs are demanding that the law was duplicitous, since government collects Value Added Tax on consumptions. It urged the court to nullify the law. The court adjourned the case till June 4.

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