Nigeria Suspends The Implementation of New Expat Levy

The Nigeria Employers’ Consultative Association (NECA) has praised the federal government’s decision to suspend the implementation of the expatriate employment levy (EEL). Adewale-Smatt Oyerinde, the director-general of NECA, commended the Minister of Interior and Minister of Industry, Trade and Investment for their roles in putting the EEL on hold. Oyerinde emphasised the government’s genuine concern for organised businesses and its responsiveness to stakeholders’ concerns.

NECA urged the government to deepen engagement with stakeholders, particularly the Organised Private Sector (OPS), and welcomed the proposal for inclusive discussions on the issue. The federal government’s suspension of the EEL, launched on February 28, came after widespread protests from various sectors, including manufacturers and investors, who argued that the levy would drive investors away from the country.

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The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) announced the temporary suspension of the EEL following a meeting with key stakeholders and government officials. The decision to pause the implementation of the levy allows for further consultations with NACCIMA and other stakeholders. A joint committee will be formed to review the EEL policy, with the aim of addressing stakeholders’ concerns and ensuring alignment with the nation’s economic objectives.

Wale Adegbite, a former chairman of the Manufacturers Association of Nigeria (MAN), commended President Bola Tinubu’s government for suspending the EEL, stating that the move would alleviate the challenges faced by manufacturers due to increasing production costs. Adegbite emphasised the importance of creating a conducive environment for manufacturers to thrive.

The Ministry of Interior announced the pause of the controversial levy, which required businesses employing expatriates to pay significant annual fees. The decision followed widespread condemnation of the levy and discussions among stakeholders. Dele Kelvin Oye, the national president of NACCIMA, welcomed the pause and praised the government’s commitment to creating an inviting atmosphere for both local and international investors.

The EEL was intended to discourage abuse of the expatriate quota system and close wage gaps between expatriates and local workers. However, it faced opposition from various organisations, including NECA and NACCIMA, who raised concerns about its potential negative impact on the economy and employment.

The suspension of the EEL reflects the government’s willingness to engage with stakeholders and address their concerns, demonstrating its commitment to fostering a conducive business environment in Nigeria.