This study explored the feasibility of developing community-based homestay tourism in Nigeria. Stakeholder theory was used to develop a strategy to ideally develop homestay tourism in the local communities, using Old Oyo National Park in Oyo State as a case study context. The approach entails assessing practicability and acceptability, the operational feasibility, and the potential outcome of developing community-based homestay tourism. A qualitative research design was deployed to capture credible results for this study, which entailed engaging tourism stakeholders through a focus group discussion data collection method conducted via Zoom. The participants were purposefully selected based on their experience in the tourism industry and their willingness to participate in the study. The various groups of stakeholders who provided data during the focus group discussion were academia, tour operators, NGOs, and local community stakeholder groups, respectively. The results showed that Nigeria's tourism state is at its lowest level due to a lack of funding, government attention, and insecurity. It was confirmed that the development of community-based homestay tourism would be practicable in Nigeria provided all stakeholders collaborated to formulate enabling tourism policies, agreed to co-manage, put into consideration the plight of the locals, and ensured the locals held a relevant position within the homestay management committee, were funded, and created effective strategies to market and promote the destination. For homestay tourism to be accepted in the local communities, the benefits must be communicated to the potential operators, the local culture must be respected, and economic benefits must be shared with equity.