Mixed Reactions Trail Proposed $500 Tourism Tax For Nigerians In Diaspora

Nigerians have been reacting to a suggestion by a Diasporan Nigerian, Chief Dokun Olumofin, that Nigerians in Diaspora who are returning home during the Christmas period should be taxed $500.

The period christened ‘Detty December’ is a time when many Nigerians, who live in foreign land visit home to meet and interact with their friends and relatives. It is a period between the middle of December to New Year; a festive period that brings Diasporan Nigerians back home in their numbers.

He is of the view that such a tax would boost the revenue base of the country. His position is given credence by MO Africa Company Limited; an advisory firm’s recent reports that Lagos hotels raked in a staggering N54 billion in December 2024.

Olumofin, who strongly believes that the government can take advantage of the period to generate revenue, had in a formal letter to President Bola Ahmed Tinubu, outlined how the initiative could significantly benefit the nation’s finances.

According to his proposal, imposing the tax on returning Diasporans between November 25 and January 5 could raise as much as $125 million, or approximately N240 billion.

He noted that such revenues could be channeled into positioning Nigeria as a global destination for festive celebrations.

Part of his letter to the president read: “This letter outlines a significant opportunity for Nigeria to generate considerable revenue-potentially up to $125 million, approximately N240 billion, based on an estimated contribution of $500 from 250,000 projected returnees.

“This revenue could be allocated towards developing tourism, and positioning Nigeria as a premier global destination for festive celebrations.”

However, since the proposal was made public, there have been reactions from the government and many Nigerians.

While the government, through the Nigerians in Diaspora Commission, NIDCOM, said it has no plan to impose such tax on Diasporan Nigerians, describing it as ill-advised, bad and exploitative, Nigerians also took to the social media to either condemn or support the proposal.

According to NIDCOM, the President Bola Tinubu-led government was not considering the advice.

NIDCOM, in a statement on Wednesday by its Director of Media, Public Relations and Protocols Unit, Abdur-Rahman Balogun, described Chief Olumofin’s proposal of a $500 tourism tax for Nigerians in the Diaspora returning home during the festive “Detty December” period as ill-advised, counter-productive and potentially exploitative.

The statement emphasized that such an advice would discourage rather than encourage many Nigerians planning to come home.

“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 Diasporans in 2024 alone were the highest so far into the economy. They have been investing massively in various sectors of the economy.

“The N54 billion that Lagos hotels alone raked in December 2024, is domiciled in the Nigerian economy, so why tax Nigerians coming to their country for various reasons and promoting their country positively?

“Such advice is also seen by NIDCOM as some sinister moves to damage the image and revenue streams of the government just as its enforcement will equally pave the way for corruption.

“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 the government in providing critical infrastructure, such as security and ease of transportation, as seen under the Renewed Hope agenda of President Bola Tinubu, should rather be encouraged and sustained, while the Diaspora organically continues to return home and contribute to the nation’s growth and development.

“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 the same.

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

Expectedly, the social media space was awash with reactions from Nigerians about the proposal.

According to a social media user simply identified as Ekeji Giwa, the proposal is a beautiful idea as it would boost the revenue base of the government.

He said: “I kind of support the $500 tax on Nigerians in Diaspora coming to Nigeria for ‘Detty December.’ It will increase the government’s revenue, thereby making more money available for infrastructural development in the country.”

For another facebook user, Zanzone Jr, the government should not be in a hurry to impose such a tax because according to him, the tourism industry has not grown enough for that.

“The $500 tax is too quick. The tourism industry in Nigeria is still growing, so such a proposal should tarry awhile,” he suggested.

Also, writing on his X handle, Mass media_tx, described the idea as very silly.