The Nigerian government’s plans to impose a $500 tax on Nigerians in the diaspora and tourists visiting the country during the popular ‘Detty December’ season have sparked outrage, with the Nigerians in Diaspora Commission (NiDCOM) coming out strongly against the idea. NiDCOM, led by its CEO Abike Dabiri-Erewa, has decried the proposed tax, calling it a move that would have damaging economic and social consequences.
The proposal, which was introduced by Chief Dokun Olumofin, aims to levy a fee on Nigerians returning home for the end-of-year festivities, as well as on foreign tourists looking to experience the unique celebrations of ‘Detty December.’ The initiative was reportedly submitted to President Bola Tinubu following several reports indicating that the influx of diasporans contributed significantly to foreign exchange earnings in the previous December.
However, NiDCOM has vehemently opposed the move, arguing that it could undermine the progress made in the country’s economic recovery. According to the commission’s Director of Media, Public Relations, and Protocols, Abdur-Rahman Balogun, the proposed tax would not only discourage Nigerians abroad from visiting their homeland but also hamper investments in the country.
“This proposal will negatively impact the image of the country, especially at a time when the nation is working hard to attract investments and improve the economy,” Balogun said in a statement. “It could also open the door for corrupt practices, as the enforcement of such a tax could easily be manipulated by unscrupulous officials.”
He further pointed out that Nigerians in the diaspora had been instrumental in driving substantial economic growth through remittances and investments. In 2024 alone, remittances from the diaspora were reported to be the highest ever, making up a significant portion of Nigeria’s foreign exchange inflows.
Balogun added that the local tourism sector had already experienced substantial growth, particularly in Lagos, which saw an influx of tourists in December 2024. According to a report by the advisory firm MO Africa Company Limited, Lagos hotels alone generated a staggering N54 billion during that period. This money, Balogun argued, was being directly invested in the Nigerian economy, which benefits from the spending of diasporans during the holiday season.
“We are not talking about small sums here,” he emphasized. “The foreign exchange earned from tourism and business activities in December 2024 is evidence that the diaspora community is contributing significantly to the country’s economic growth. This proposal to impose a tax would be detrimental to that momentum.”
The ‘Detty December’ period, a term that has come to symbolize the end-of-year festivities in Nigeria, has long been a major draw for Nigerians abroad. With vibrant music festivals, holiday parties, family reunions, and a variety of tourism-related activities, it is a time when many diasporans return home to reconnect with their roots and enjoy the country’s cultural offerings.
In recent years, the season has also seen an increase in tourists from other parts of Africa and beyond, eager to experience the unique atmosphere and events. However, this growth has not gone unnoticed by those looking to capitalize on it, with some now calling for additional revenue generation through taxes on visitors.
Despite the significant contributions of diasporans to the economy, some have voiced concerns that the new tax proposal would deter future visits. Critics argue that imposing such a fee could discourage Nigerians abroad from returning to the country, especially considering the already high costs associated with international travel, accommodation, and other expenses.
One Nigerian returning from the United Kingdom for the holiday season expressed concern about the tax, stating, “Nigerians abroad are already sending money home to support families and invest in local businesses. Adding a $500 tax just for visiting feels like an extra burden.”
Experts also argue that rather than imposing additional taxes, the government should focus on creating an environment conducive to sustainable tourism and business investments. This includes improving infrastructure, addressing security concerns, and incentivizing foreign investment in local industries.
NiDCOM has called on the Nigerian government to prioritize these measures over the introduction of taxes that may discourage diaspora engagement. The commission urged the government to focus on providing an enabling environment that fosters investment, tourism, and a positive image for the country.
Balogun concluded: “The diaspora has always been an essential part of Nigeria’s development. The government must continue to foster the right environment, one that encourages more people to come home, invest, and enjoy what Nigeria has to offer.”
The issue has sparked a broader debate about the role of the Nigerian diaspora in the country’s development. Diaspora remittances alone represent a significant source of income for the country, with many families depending on funds sent from abroad. As Nigeria seeks to bolster its economic standing in the global community, it remains crucial for policymakers to consider the long-term impact of such proposals on the relationships between the nation and its citizens abroad.
