The Nigerians in Diaspora Commission on Wednesday dismissed a proposal to impose a $500 tax on Nigerians and tourists returning home during the festive season.
The proposal, submitted by Nigerian socialite, Chief Dokun Olumofin, to President Bola Tinubu, suggested how the government could take advantage of the festive “Detty December” period between November and January to generate revenue.
In his formal letter to Tinubu, Olumofin outlined how the country could generate tax by imposing a $500 tax on Nigerians and tourists returning home during the festive season to benefit the nation’s finances.
In a statement by NIDCOM’s Director of Media, Public Relations, and Protocols, Abdur-Rahman Balogun, the commission criticised the idea as exploitative and detrimental to diaspora engagement efforts.
NIDCOM argued that such a tax would discourage Diasporans from visiting, reconnecting with their homeland, and contributing to the economy.
Responding, in a press statement issued on Wednesday by Abdur-Rahman Balogun, the Director of Media, Public Relations and Protocols Unit NiDCOM, the government described Olumofin’s advice as counter productive.
Abdur-Rahman wrote: “The Nigerians in Diaspora Commission (NIDCOM) has described the suggestion by one Chief Dokun Olumofin, proposing a $500 tourism tax for Nigerians in the diaspora returning home during the festive “Detty December” period as ill-advised and potentially exploitative.
“The statement described such advice as counterproductive and would rather discourage than encourage many Nigerians planning to come home.
Citing the significant economic contributions from the Nigerian diaspora, including record remittances in 2024 and the N54bn revenue generated by Lagos hotels during December, NIDCOM noted that taxing returnees would undermine these benefits.
“Such advice will no doubt mitigate efforts of the Diaspora Commission in encouraging the Diasporans to visit home, invite others, and invest. It is also seen by NIDCOM as some sinister move to damage the image and revenue streams of the government just as its enforcement will equally pave the way for corruption.
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“Besides, the remittances of the diaspora in 2024 alone were the highest so far into the economy; they have been investing massively in various sectors of the economy.
“The said N54bn that Lagos hotels alone raked in December 2024, according to a report by an advisory firm MO Africa Company Limited, is domiciled in the Nigerian economy, so why tax Nigerians coming to their country for various reasons and promoting their country positively?” he stated.
Instead, the commission urged the government to focus on creating an enabling environment that fosters tourism and investment.
“NIDCOM reiterates that the government should continue to provide an enabling environment for all, which encourages the diaspora to come back home for holidays and invest more in the country,” it advised.
NIDCOM lauded Lagos State’s efforts to attract visitors and encouraged other states to follow suit, warning that increasing costs for returnees would damage Nigeria’s reputation and competitiveness in the global tourism market.
