The Nigerians in Diaspora Commission (NIDCOM) has opposed the imposition of a $500 tourism tax on Diaspora Nigerians, returning home during the Yuletide, describing it as ill-advised and potentially exploitative.
Chief Dokun Olumofin had in a letter to President Bola Tinubu, proposed a $500 tax on all Nigerians returning home and foreign tourists visiting the country between November and January.
NIDCOM in a statement issued by the commission’s Director of Media, Public Relations, and Protocols Unit, Abdur-Rahman Balogun, and posted by the commission’s Chairman, Abike Badiri-Erewa, on her X handle, described the proposal as counter-productive and unacceptable.
The statement emphasised that such an idea will discourage, rather than encourage many Nigerians who are planning to return home.
“This misguided advice undermines the efforts of the Diaspora Commission to motivate citizens abroad to visit, invite others, and invest in Nigeria. Notably, remittances from the Diaspora in 2024 reached record levels, significantly contributing to the economy.
“For instance, Lagos hotels alone generated N54 billion in revenue in December 2024, as reported by MO Africa Company Limited. Such funds are crucial to the Nigerian economy, making proposals for new taxes on individuals returning for various reasons is not only unwelcome but detrimental to the country’s image.
“NIDCOM views this proposal as a potential threat to the government’s revenue streams and image, as its implementation could lead to corruption. Currently, the government benefits from indirect taxes on visitors through entertainment and other services, negating the need for direct taxation.
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“The commission believes that the priority should be on the government’s role in providing essential infrastructure, such as security and efficient transportation, as outlined in President Bola Tinubu’s renewed hope agenda.
“This approach should foster a welcoming environment that encourages Nigerians in the Diaspora to return home for holidays and invest in the nation’s development.
“NIDCOM commends the Lagos State Government for creating a world-class environment for Diasporans and tourists alike, anticipating that the number of visitors will continue to rise. The commission encourages all states to adopt similar practices.
“It is concerning to note that while other countries are working to lower barriers and attract tourists, Chief Olumofin is proposing measures that would increase costs and create obstacles for Nigeria,” the commission said.