Detty December: NIDCOM rejects $500 tourism tax proposal for returning Nigerians

The Nigerians in Diaspora Commission (NIDCOM) has dismissed a proposal to impose a $500 tourism tax on Nigerians and tourists returning home during the festive period.

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The proposal, submitted by Nigerian socialite Dokun Olumofin in a formal letter to President Bola Tinubu, suggested that the tax on returning diasporans between 25 November and 5 January could raise as much as N240 billion for the nation.

This revenue, according to Mr Olumofin could be channelled towards positioning Nigeria as a global destination for festive celebrations.

Mr Olumofin’s proposal comes in the wake of reports showing that the influx of visitors during the festive period led to a surge in hotel bookings, short-let apartment rentals, and clubs raking in N360 million daily in Lagos State.

According to the report, hotel revenue in Lagos for December 2024 hit N54 billion from 15,000 bookings, just as the tourism and entertainment sectors generated N111.5 billion during the same month.

Unfair proposal

NIDCOM, in a statement posted on its X account on Wednesday, described the proposal as misguided and unfair, stating that it would discourage Nigerians abroad from visiting home.

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The commission said such advice is counterproductive and would rather discourage than encourage many Nigerians planning to come home.

The statement reads in part: “The suggestion by one Chief Dokun Olumofin, proposing a $500 tourism tax for Nigerians in the diaspora returning home during the festive “Detty December” period is ill-advised and potentially exploitative

“Such advice is counterproductive and would rather discourage than encourage many Nigerians planning to come home.”

The commission said that the remittances from the diaspora in 2024 alone were the highest so far in the economy, noting that they have been investing massively in various sectors of the economy.

Additionally, the commission referenced the report by MO Africa Company Limited, which revealed that Lagos hotels alone generated N54 billion in December 2024, further emphasising the economic impact of the diaspora during the festive season.

The commission further questioned the rationale behind such a proposal, highlighting that the revenue generated by Nigerians returning home for the holidays stays within the Nigerian economy.

“Why tax Nigerians coming to their country for various reasons and promoting their country positively,” the statement read.

The Role of Government

NIDCOM argued that the government already gains revenue through indirect taxes from entertainment and other services and, therefore sees no need to impose direct taxation.

“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.”

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It further described the proposal as a deliberate attempt to damage the government’s image and revenue streams, with its enforcement likely paving the way for corruption.

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

NIDCOM further commended the Lagos State Government for creating a world-class environment for tourists and diaspora members, urging other states to follow suit.