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Mixed Reactions Emerge Over Proposed $500 Tax for Nigerians in Diaspora Visiting Home

Published by Tope Fakinlede on January 26th, 2025.

Mixed Reactions Emerge Over Proposed $500 Tax for Nigerians in Diaspora Visiting Home

A proposal by Chief Dokun Olumofin, a Nigerian in the diaspora, suggesting a $500 tax for Nigerians returning home for the holidays, has sparked widespread debate.

Olumofin, a proponent of the idea, believes that such a tax would enhance the country’s revenue, especially during the Christmas season, known locally as ‘Detty December.’ This period, spanning from mid-December to New Year’s Day, sees a large influx of Nigerians living abroad returning to reconnect with family and friends.

According to Olumofin, the tax could generate up to $125 million (around N240 billion) if implemented between November 25 and January 5, citing a recent report by MO Africa Company Limited, which highlighted that Lagos hotels earned N54 billion in December 2024 alone.

Olumofin has also formally written to President Bola Ahmed Tinubu, advocating for the tax as a means to bolster the nation’s finances, urging that the government could capitalize on the annual return of diaspora Nigerians.

However, the proposal has faced mixed reactions. The National Diaspora Commission (NIDCOM) expressed concern, suggesting that while other countries are making efforts to attract tourists and reduce barriers, Olumofin’s idea could place unnecessary financial burdens on potential visitors.

Social media users have voiced their opinions on the matter. Some, like Ekeji Giwa, support the initiative, seeing it as a way to increase government revenue for infrastructure development. “I believe the $500 tax on returning Diasporans for ‘Detty December’ is a good idea,” he commented, “It would help fund projects that improve the country.”

Others, such as Zanzone Jr., argue that Nigeria’s tourism industry is not yet mature enough for such a tax. “The $500 tax is premature,” he stated, “The tourism industry is still developing, and the government should hold off on this for now.”

On the other hand, critics like Mass media_tx dismissed the idea as unreasonable, questioning if countries like the USA or Ghana impose similar taxes on returning citizens. “Would Americans or Ghanaians tolerate such a tax? It’s a silly suggestion,” he wrote.

Support for the tax also came from some Nigerians, including Kemany_caterer, who views it as an opportunity to fund his personal business ventures. “This proposal could bring in revenue while also benefiting my business,” he noted.

Conversely, there was strong opposition from people like Chukzyfcb, who criticized any effort that would burden Nigerians with additional costs. “Why do we always see suggestions that just take more money from Nigerians? This proposal is unfair,” he remarked.

Zacheus Afolabi, a lawyer based in Canada, also condemned the idea, warning that it could discourage Nigerians from returning home during the festive season. “This is a terrible idea. If implemented, fewer Nigerians would come home for the holidays, and it would hurt local economies that benefit from their visits,” he said. “The government should reject this suggestion entirely.”

As the debate continues, it remains unclear whether the proposal will move forward, with many urging the government to reconsider. NIDCOM has described it as counterproductive, urging that such ideas be abandoned in favor of more inclusive measures that would encourage tourism and investment in the country.