FG Lifts The Expatriate Employment Levy Temporarily
The Federal Ministry of Interior has put a stop to the Expatriate Employment Levy's (EEL) implementation.
The federal government has declared that the Expatriate Employment Levy (EEL), which was recently proposed by Olubunmi Tunji-Ojo, Minister of the Interior, will be temporarily suspended.
Tuesday marked the introduction of the Expatriate Employment Levy (EEL) by President Tinubu. However, given the current difficulties faced by many businesses in the nation, private sector organizations widely criticized the levy's introduction, lamenting the unfavorable effects of enacting a new one.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), in collaboration with significant partners, has announced the postponement of the levy's enforcement in a press release.
Barely more than a few weeks had passed since the policy's introduction before the suspension.
The EEL policy was created to tax foreign employees, which in turn motivates businesses to employ local candidates with the necessary skills for the same positions.
Nevertheless the policy has come under fire from a number of quarters, with some claiming that it might discourage foreign investment and reduce economic efficiency.
“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,” the statement from NACCIMA reads in part.
President Bola Tinubu introduced the Federal Ministry of Interior's idea of an expatriate employment levy earlier this week in the State House Council Chambers in Abuja.
The Federal Government's recent initiative was anticipated to yield several benefits, including enhanced revenue generation, expanded employment prospects for Nigerians employed by foreign companies in Nigeria, and reduction of wage disparities between Nigerian employees and expatriates.
However, the policy has drawn a lot of criticism due to worries that it could deter foreign investment and lower economic efficiency.
The employers in the Nigerian private sector, represented by the Nigeria Employers' Consultative Association (NECA), for example, voiced concerns that the recently imposed expatriate employment levy would jeopardize the ongoing fiscal reforms being carried out by the Bola Tinubu administration.
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