The Nigerians in Diaspora Commission (NIDCOM) has firmly rejected a proposal by one Chief Dokun Olumofin to the Federal Government to impose a $500 tourism tax on Nigerians in the diaspora returning home during the festive “Detty December” season.
Olumofin, in a letter to President Bola Tinubu, canvassed imposition of the $500 tax on Nigerians and tourists returning to Nigeria between November and January each year to boost the nation’s revenue generation, especially foreign exchange (FX) accruals.
Reacting to the proposal in a statement signed by its Director Media, Public Relations and Protocols Unit, Mr. Abdur-Rahman Balogun, the NIDCOM described the suggestion as undesirable, exploitative, and detrimental to national interests as it would make it harder for Nigerians abroad to connect with their homeland.
The statement reads: “Such advice will no doubt mitigate efforts of the Diaspora Commission in encouraging the Diasporans to visit home, invite others and invest.
“Besides, the remittances of the diaspora in 2024 alone was the highest so far into the economy; they have been investing massively in various sectors of the economy.
“The said N54 billion 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?
“Such advice 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.
“For now, the Commission believes that the government does not need to issue direct tax as it is already raking in money through channels of indirect taxes on all visitors through entertainment and other sundry services.
“The role of government in providing critical infrastructure , such as security , and ease of transportation, as seen under the Renewed hope agenda of President Bola Ahmed Tinubu should rather be encouraged and sustained, while the diaspora organically continues to return home and contribute to the nation’s growth and development”, it added.
Noting that the government is already earning revenue through taxes on entertainment and other services, the commission advised the government to focus on improving security, transportation, and infrastructure projects in order to encourage more Nigerians abroad to visit and invest in the economy.
The NIDCOM further stressed the need for the government to continue to create enabling environment for investments and commended the Lagos State Government for creating conducive environment for Diasporans and tourists to invest in the state.
