Nigeria dismisses proposal to impose a $500 tax on returnees during the festive season, citing negative impact on diaspora relations

The Nigerian government has firmly dismissed a proposal that suggested imposing a $500 tax on Nigerians and tourists returning home during the Yuletide season.

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The proposal, which was submitted by Nigerian socialite Chief Dokun Olumofin to President Bola Tinubu, aimed to generate revenue by taxing returnees between November and January.

Abdur-Rahman Balogun, spokesperson for the Nigerians in Diaspora Commission (NiDCOM), made a public statement rejecting the idea, emphasising that such a policy would paint the country in a negative light.

He stressed that it would not only be exploitative but also detrimental to the efforts of NiDCOM in fostering positive relations with the Nigerian diaspora.

The proposal to impose a tax on returnees has raised concerns over its potential consequences. NiDCOM described the idea as damaging to the efforts of encouraging Nigerians abroad to visit their home country, invest, and invite others.

According to the commission, taxing Nigerians returning home during the festive season could severely undermine the significant economic contributions made by the diaspora, especially through remittances.

“Such advice will no doubt mitigate the efforts of the Diaspora Commission in encouraging Diasporans to visit home, invite others, and invest,” NiDCOM stated. “It is also seen by NiDCOM as a sinister move to damage the image and revenue streams of the government.”

The commission also warned that enforcing such a tax could lead to corruption and undermine the positive relationship between Nigeria and its diaspora communities.

NiDCOM’s rejection of the tax proposal highlights the importance of the Nigerian diaspora to the country’s economy. Remittances sent home by Nigerians living abroad have become a crucial source of foreign exchange, with 2024 seeing record-breaking figures.

In July 2024, the Central Bank of Nigeria reported receiving $553 million in remittances, marking the highest amount ever recorded for the country.

The commission pointed out that the diaspora’s contributions are vital, with Nigerians abroad investing in various sectors of the economy.

In addition to remittances, which have bolstered the economy, the Nigerian diaspora plays a key role in the country’s development, making the proposed tax seem counterproductive and unnecessary.

The rejection of the proposal also signals the government’s commitment to maintaining strong ties with the Nigerian diaspora.

The country’s foreign relations with its global community have been further strengthened by the growing number of Nigerians living abroad who continue to support their home nation economically.

In a statement, NiDCOM reiterated that the focus should be on strengthening ties with the diaspora rather than implementing policies that could negatively impact these relationships.

“Taxing returnees at this time would have done more harm than good,” the commission concluded.

The Nigerian government’s rejection of the proposed $500 tax underscores the importance of nurturing the relationship with the diaspora, whose contributions have been crucial to the country’s economic success.

NIDCOM has strongly opposed the proposed $500 tourism tax on Nigerians in the Diaspora, calling it counterproductive and harmful to the nation’s economic and diplomatic image, especially during the holiday season

The Nigerians in Diaspora Commission (NIDCOM) has strongly criticised the proposal to impose a $500 tourism tax on Nigerians returning home during the Yuletide.

Chief Dokun Olumofin had suggested the tax on all Nigerians returning home and foreign tourists visiting between November and January, a move NIDCOM described as ill-advised and potentially exploitative.

In a statement issued by NIDCOM’s Director of Media, Public Relations, and Protocols, Abdur-Rahman Balogun, the commission described the proposal as counterproductive, warning that it could discourage Nigerians abroad from returning home.

This, they argue, could harm Nigeria’s economy, which benefits significantly from Diaspora remittances and tourism spending.

The NIDCOM statement also noted that Lagos hotels alone generated N54 billion in December 2024, showing how vital the tourism and hospitality sectors are to Nigeria’s economic growth.

The commission stressed that the Nigerian government should focus on improving essential infrastructure like security and transportation, rather than burdening citizens with additional taxes.

NIDCOM applauded Lagos State’s efforts to provide a welcoming environment for Diaspora visitors and urged other states to adopt similar practices.

It also raised concerns that while other countries are lowering barriers to attract tourists, the proposed tax would only add to Nigeria’s economic and image challenges.

Lagos State unveils monthly landmark tours to showcase cultural heritage and boost tourism, connecting the diaspora with the city.

In a strategic move to spotlight its cultural heritage and strengthen its tourism sector, the Lagos State Government has introduced a new initiative: monthly landmark tours on both land and water.

The tours aim to promote Lagos as a vibrant hub of culture, transportation, and tourism to a global audience.

Idris Aregbe, the Special Adviser to the Lagos State Governor on Tourism, Arts, and Culture, announced the initiative during a hosting event for Nigerians in the diaspora and Lagos enthusiasts.

The programme, themed “Lagos Tourism is Rising,” will be held monthly, allowing participants to explore the city’s iconic landmarks.

According to Aregbe, the tours are designed to foster connections between Lagos and the Nigerian diaspora while showcasing the city’s historical and cultural richness.

“Through this initiative, we aim to promote our cultural heritage and strengthen the bond between the diaspora community and Lagos.

It offers an opportunity for everyone to admire scenic views, learn, and appreciate our rich cultural history,” Aregbe said in a statement on Sunday.

The initiative also acknowledges the diaspora community’s significant contributions to Lagos’s economy and cultural celebrations.

The inaugural tour provided an immersive experience, featuring a double-decker bus, a motorbike convoy, and Lagos Ride vehicles that navigated through key areas such as Ikoyi, Lekki, and Lagos Island.

Participants visited renowned landmarks, including:

• The J. Randle Centre for Yoruba Culture and History
• Nike Art Gallery

The tour concluded with a dinner, offering music, dance, and engaging conversations, leaving guests with memorable impressions of Lagos.

The event attracted prominent figures, including Khadijat Omotayo, Personal Assistant to the President on Constituency Affairs, and Oluwatoyin Atekoja, Permanent Secretary of the Lagos Ministry of Tourism.

This initiative underscores Lagos State’s commitment to tourism as a driver of economic growth. By providing an engaging platform for both locals and visitors, the government hopes to enhance Lagos’s reputation as a premier business and holiday destination.

As the tours continue, they promise to bring global attention to Lagos’s cultural treasures while deepening connections with the Nigerian diaspora and admirers worldwide.