NIDCOM Rejects $500 Festive Tax Proposal for Returning Nigerians

Kehinde Fajobi

The Nigerians in Diaspora Commission (NIDCOM) has dismissed a proposal to impose a $500 tax on Nigerians returning home during the festive season, describing it as exploitative and counterproductive.

Chief Dokun Olumofin had suggested the tax in a letter to President Bola Ahmed Tinubu, targeting Nigerians and tourists arriving between November and January.

In a statement signed by NIDCOM’s Director of Media, Public Relations, and Protocols, Abdur-Rahman Balogun, the Commission strongly opposed the idea, stating, “Such advice will no doubt mitigate efforts of the Diaspora Commission in encouraging the Diasporans to visit home, invite others and invest. It is all shades of No.”

Balogun highlighted the significant contributions of the diaspora to the Nigerian economy, including record remittances in 2024 and massive investments in various sectors.

He also referenced a report showing Lagos hotels generated ₦54 billion in December 2024, attributing the gains to Diasporans.

“Why tax Nigerians coming to their country for various reasons and promoting their country positively?” Balogun asked.

NIDCOM warned that enforcing such a tax could damage Nigeria’s global image, reduce government revenue streams, and pave the way for corruption.

The statement emphasised that indirect taxes on entertainment and other services already generate revenue and urged the government to focus on providing critical infrastructure, including security and transport, to encourage more Diasporans to return and invest.

“NIDCOM also commends the Lagos State government for providing a world-class environment for Diasporans and tourists and encourages other states to follow suit,” the statement read.

The Commission criticised Olumofin’s proposal, noting that other nations are lowering barriers to attract visitors and inflows, while he is advocating for increased costs.