‘Detty December’: NIDCOM rejects proposal to impose $500 tax on diasporans

The Nigerians in Diaspora Commission (NIDCOM) has rejected a proposal to impose a $500 tax on Nigerians returning home during the festive “Detty December” period, cautioning that such a policy would deter Diasporans from visiting and investing in the country.

The proposal, made by Chief Dokun Olumofin in a letter to President Bola Ahmed Tinubu, suggested taxing Nigerians and tourists returning between November and January.

However, NIDCOM described the idea as described the idea as exploitative, ill-conceived, and counterproductive.

In a statement signed by its spokesperson, Mr. Abdur-Rahman Balogun, NIDCOM said the tax 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.

ALSO READ: ‘Detty December’: Lagos hotels generate N54bn in December 2024 — Report

“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?

“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,” Balogun stated.

The commission explained that the government already earns money through taxes on entertainment and other services.

It urged the government to focus on improving security, transportation, and other infrastructure to encourage more Nigerians abroad to visit and invest.

He continued, “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.

“NIDCOM also commends the Lagos state government for providing a world class environment for Diasporans and tourists in general , projecting that the numbers will continue to grow, while encouraging all states to do same and the country be prepared for more positive implosions in the country’s tourism and entertainment landscape.”

NIDCOM praised Lagos State for creating a welcoming environment for visitors and asked other states to do the same.

The commission warned that taxing returning Nigerians would harm the country’s reputation and reduce tourism.

“It is pathetic to note that while the world is lowering barriers to get more inflows and tourists  into their country and economy, Chief Olumofin is suggesting increasing costs and raising barriers for Nigeria,” the statement concluded.

NIGERIAN TRIBUNE