- The Nigerian Diaspora Commission has rejected the proposal to tax diasporans $500
- NiDCOM said the proposal would undermine efforts to encourage diasporan visitation and investment
- The commission urged the government to create an enabling environment for diasporan investment
The Nigerian Diaspora Commission (NiDCOM) has rejected the proposal to impose a $500 tax on Nigerians and tourists returning home during festive seasons.
NiDCOM’s Director of Media, Public Relations, and Protocols, Abdur-Rahman Balogun, said in a statement on Wednesday, January 15, that the proposal would hamper efforts to encourage Nigerians in the diaspora to return home and invest in the country.
It would be recalled that a Nigerian socialite, Chief Dokun Olumofin, submitted the proposal to tax returning Nigerians $500 to President Bola Tinubu, suggesting that the tax be applied between November 25 and January 5 to boost revenue.
The agency cited the contribution and huge diaspora remittances into the country and the N54 billion revenue generated by hotels in Lagos State during the yuletide season, arguing that implementing the tax proposal will erode these benefits.
It said, “Such advice will no doubt mitigate efforts of the Diaspora Commission in encouraging the Diasporans to visit home, invite others, and invest.
“It is also seen by NiDCOM as some sinister move to damage the image and revenue streams of the government just as its enforcement will equally pave the way for corruption.
“Besides, the remittances of the diaspora in 2024 alone were the highest so far into the economy; they have been investing massively in various sectors of the economy.
“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?”
NiDCOM urges government to create enabling environment for investment
The agency said that instead of taxing returning Nigerians, the government should create an enabling environment that encourages tourism and investment.
It noted that such investments will contribute to the economic development of the country and boosting its revenue.
NiDCOM also lauded the efforts of the Lagos State government attract visitors and encouraged other states to follow suit.
It said, “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.”
CBN introduces accounts to allow diasporans to invest in Nigeria, bars local deposits
Meanwhile, TheRadar earlier reported that the Central Bank of Nigeria (CBN) introduced two new financial products, the Non-Resident Nigerian Ordinary Account (NRNOA) and the Non-Resident Nigerian Investment Account (NRNIA), aimed at attracting investments from Nigerians living abroad.
The CBN said these accounts aim to streamline remittances, encourage investments, and foster financial inclusion among Nigerians in the diaspora.
