The Nigerian government has dismissed a proposal to impose a $500 tax on Nigerians and tourists returning home during the Yuletide season.

In a statement by the spokesperson of the Nigerians in Diaspora Commission, NiDCOM, Abdur-Rahman Balogun, the commission stated that such a policy would paint the country in a bad light.

A proposal, submitted by Nigerian socialite Chief Dokun Olumofin to President Bola Tinubu, suggested the tax be applied between November and January to boost revenue.

Reacting to the proposal, NiDCOM described the idea as exploitative and detrimental to diaspora engagement efforts.

Citing the significant economic contributions from the Nigerian diaspora, including record remittances in 2024 and the N54 billion revenue generated by Lagos hotels during December, NiDCOM noted that taxing returnees would undermine these benefits.

“Such advice will no doubt mitigate the efforts of the Diaspora Commission in encouraging Diasporans to visit home, invite others, and invest. It is also seen by NiDCOM as a 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 commission stated.

In October last year, the Chief Executive Officer of NiDCOM, Abike Dabiri-Erewa, noted that diaspora remittances are the highest form of foreign exchange to Nigeria.

Data from the Central Bank of Nigeria showed that the country received $553 million in July 2024 as diaspora remittances, the highest ever.