Victor EzejaThe Centre for the Promotion of Private Enterprise (CPPE) has commended President Bola Tinubu, the Coordinating Minister for the Economy, the Minister of Industry, Trade and Investment and the Minister of Interior for suspending the implementation of the contentious Expatriate Employment Levy (EEL), noting that it demonstrates the fact that the Tinubu administration is responsive, and inclusive in its governance process.
In a statement signed by its Chief Executive Officer, Dr Muda Yusuf, CPPE however said the Federal Government do not need to design a new policy to regulate expatriate employment in Nigeria, arguing that there are existing laws and regulations within the framework of the Nigeria Immigration Act and the Expatriate Quota Handbook that comprehensively addressed the issues contemplated in the new EEL policy launched recently by the Ministry of Interior.
Prime Business Africa recalls that the Ministry of Interior recently launched a new EEL handbook which imposed taxes on companies employing foreign expatriates ($15,000 for directors and $10,000 for foreign expatriate staff in other categories).
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The policy generated reactions from stakeholders which prompted the government to temporarily suspend implementation of the policy pending outcome of a review to be done by a joint committee comprising members of the Ministry of Industry, Trade and Investment, the Ministry of Interior, National Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), and other stakeholders.
The CPPE said: “Meanwhile, as we reflect on next steps, we wish to stress that there are already extant laws and regulations within the framework of the Nigeria Immigration Act and the Expatriate Quota Handbook that squarely addresses the outcomes contemplated in the EEL.”
“The handbook is robust and comprehensive and covers the critical issues of technology transfer, localization of jobs, and restrictions of some categories of expatriates from entry into the country, based on current skill gaps,” it added.
The economic think tank further cited the National Content Act and the Presidential Executive orders three and five which focus on localization of procurement and service opportunities.
It contended that what needs to be done is to strengthen institutional and regulatory system in the Ministry of Interior and the Immigration Service to ensure effective enforcement and compliance.
“The truth is that relevant institutions have over the years been considerably compromised. These are the gaps that needs to be addressed. We really do not need a new policy, regulation or handbook on the employment of expatriates. A new regulation or policy will be superfluous. The current regulations or handbook could be tweaked, if necessary,” the centre stated.
It pointed out that there are instances of regulatory weaknesses that need to be addressed by the appropriate authorities.
According to Yusuf, there are instances of expatriates operating in the retail sector where they compete with market men and women in a manner considered to be an unfair competition and urged the authorities to look into it because the country do not lack expertise in retail trading.
“Evidence of regulatory weaknesses are the numerous instances of expatriates operating in the retail sector in the open markets, competing with our market women and men. We surely do not lack expertise in retail trading. But we have seen cases of some expatriates taking up shops in our traditional markets.
“Many of our indigenous traders in the markets have been displaced by these expatriates because they cannot compete with them. There are similar concerns expressed by our indigenous retailers in the computer and electronics, textiles and fabrics, and fashion accessories where expatriates are competing with them at the retail end of the market. Some of these companies dominate the entire value chain – they are the manufacturers, distributors and retailers.
‘’These are some of the issues that need to be addressed by the immigration service and the ministry of interior. Competition with our struggling market women and men is clearly an unfair competition,” it stated.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
