The Nigerian government has rejected a proposal to impose a $500 tax on Nigerians and tourists returning home during the Yuletide season. In a statement issued by Abdur-Rahman Balogun, the spokesperson for the Nigerians in Diaspora Commission (NiDCOM), the commission emphasized that such a policy would negatively impact the country’s image.
Media Talk Africa recalls that the proposal was submitted to President Bola Tinubu by Nigerian socialite Chief Dokun Olumofin. It suggested that the tax be implemented from November to January as a means to boost government revenue. In response, NiDCOM characterized the idea as exploitative and harmful to efforts aimed at engaging the diaspora.
NiDCOM highlighted the significant economic contributions made by the Nigerian diaspora, including record remittances in 2024 and the N54 billion generated by Lagos hotels during December. The commission argued that taxing returnees would undermine these benefits. They stated, “Such advice will no doubt mitigate the efforts of the Diaspora Commission in encouraging Diasporans to visit home, invite others, and invest. It is also seen by NiDCOM as a sinister move to damage the image and revenue streams of the government, just as its enforcement will equally pave the way for corruption.”
Furthermore, NiDCOM pointed out that remittances from the diaspora in 2024 were the highest recorded to date, with substantial investments being made across various sectors of the economy. In October of the previous year, the Chief Executive Officer of NiDCOM, Abike Dabiri-Erewa, noted that diaspora remittances represent the highest form of foreign exchange for Nigeria. Supporting this, data from the Central Bank of Nigeria indicated that the country received $553 million in diaspora remittances in July 2024, marking the highest amount ever recorded.
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