The Nigerians in Diaspora Commission (NIDCOM) has 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 implementing the tax between November and January as a revenue-boosting measure.
Criticism of the Proposal
In a statement by NIDCOM’s Director of Media, Public Relations, and Protocols, Abdur-Rahman Balogun, the commission criticised the proposal as exploitative and counterproductive. It argued that the tax would discourage Nigerians in the diaspora from visiting their homeland, reconnecting with their roots, and contributing to the economy.
“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,” Balogun stated.
Economic Contributions of the Diaspora
NIDCOM highlighted the significant contributions of the Nigerian diaspora, citing record remittances in 2024 and the substantial revenue generated by tourism during the festive season. For example, Lagos hotels reportedly earned N54 billion in December 2024 alone, according to a report by MO Africa Company Limited.
“The remittances of the diaspora in 2024 alone were the highest so far into the economy; they have been investing massively in various sectors. The N54 billion Lagos hotels raked in last December is domiciled in the Nigerian economy, so why tax Nigerians coming to their country for various reasons and promoting their country positively?” Balogun asked.
Encouraging Tourism and Investment
Rather than imposing a tax, NIDCOM urged the government to focus on creating a conducive environment for tourism and investment. The commission emphasized that efforts should prioritize attracting more visitors and encouraging the diaspora to invest in the country’s development.
“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,” the statement advised.
Praise for Lagos State
The commission lauded Lagos State for its successful initiatives to attract visitors and generate revenue through tourism. It called on other states to emulate Lagos by fostering tourism-friendly policies and warned that imposing additional costs on returnees could harm Nigeria’s reputation and competitiveness in the global tourism market.
Conclusion
NIDCOM’s rejection of the $500 tax proposal underscores the importance of maintaining strong ties with the Nigerian diaspora. By focusing on policies that promote tourism and investment, the government can enhance economic growth while preserving the country’s positive image.
