Reactions From Stakeholders Force Nigerian Govt To Temporarily Suspend Expatriate Employment Levy  

The Nigerian government has temporarily suspended the Expatriate Employment Levy (EEL) recently introduced by the Ministry of Interior.

This was confirmed in separate statements issued by the  Ministry of Interior and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).

The decision to halt the implementation of the EEL policy came after a meeting between the Minister of Interior, Dr Tunji Ojo and a delegation led by the Minister of Industry, Trade and Investment, Mrs Doris Uzoka-Anite, on Friday, to address concerns raised by employers and other stakeholders since the policy was launched.

The EEL policy launched recently, was to impose higher taxes on companies employing foreign expatriates in a bid to encourage them to hire qualified local workers for the same roles.

According to the handbook containing the policy released by the Ministry of Interior, affected companies were to pay $15,000 and $10,000 for foreign expatriates in the director level and other categories respectively.

The policy, however, generated reactions from stakeholders such as the Nigeria Employers Consultative Association (NECA), Lagos Chamber of Commerce and Industry (LCCI), and notable economic experts among others, who said it would have negative implications on foreign direct investment which Nigerian government is currently pursuing vigorously and a couple of other reasons they gave.

According to a statement signed by Ozoya Imohimi, Director of Press and Public Relations,  the meeting was to foster constructive dialogue and explore ways to enhance the implementation of the policy while ensuring the welfare of Nigerians and promoting investment.

The statement quoted the Interior Minister saying during the meeting that it is important to strike a balance between attracting foreign investment and prioritising human capital development for the benefit of Nigerians.

“We understand the concerns raised by stakeholders, and we are committed to finding solutions that promote investment while safeguarding the interests of Nigerians,” the Minister said, adding that the EEL policy was initiated to discourage abuse of the Expatriate quota system and promote the development of the local workforce.

Tunji-Ojo assured stakeholders of the Ministry’s willingness to engage further and find mutually acceptable solutions.

“The meeting resolved that the implementation of the policy should be put on hold for further dialogue among stakeholders.

“The Ministry of Interior remains committed to pursuing strategic partnerships to ensure that our processes align with modern standards that safeguard Nigeria’s national interests,” the statement added.

On its part, NACCIMA in a statement signed signed by its national president, Dele Kelvin Oye,  said: “The implementation of the Expatriate Employment Levy will be paused, allowing for further consultations with NACCIMA and other vital stakeholders.”

It added that a joint committee comprising members of the Ministry of Industry, Trade and Investment, the Ministry of Interior, NACCIMA, and other stakeholders will be formed to review the EEL policy.

The NACCIMA statement read in part: “The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) in collaboration with key stakeholders announced a temporary step down of the recently enacted  Expatriate Employment Levy (EEL) by the Federal Ministry of Interior, as administered by the Nigeria Immigration Service.

“This was the resolution of a productive meeting held today with the Honorable Minister of Industry, Trade and Investment and the Honorable Minister of Interior, joined by esteemed representatives including the President of Petroleum Technology Association, the President of Special Economic Zones Association, the Director General of The Nigerian Turkiye Business Council, the European Union, NASME, and the NACCIMA Chair of Digital Trade Group.

“The implementation of the Expatriate Employment Levy will be paused, allowing for further consultations with NACCIMA and other vital stakeholders.

“A joint committee comprising members of the Ministry of Industry, Trade and Investment, the Ministry of Interior, NACCIMA, and other stakeholders will be formed to review the EEL policy.

“The rollout of the EEL, as initially proposed, will be deferred by the resolutions made.”

NACCIMA thanked the Federal Government, the Ministry of Industry, Trade and Investment, and the Ministry of Interior for understanding and willingness to engage in dialogue and consider the implication of the EEL policy on the business community.