Tinubu Introduces Expat Levy to Boost Local Employment in Nigeria

President Bola Tinubu unveiled the Expatriate Employment Levy (EEL) on Tuesday, marking a significant step towards regulating the employment of expatriates in Nigeria. The levy, as outlined in the EEL handbook, aims to strike a balance between the advantages of expatriate employment and the protection of Nigeria’s local labour market and resources.

The EEL primarily targets offshore earnings of expatriates across various sectors including Construction, Information and Communication Technology (ICT), Agriculture, Manufacturing, Oil & Gas, Telecommunication, Services, Banking and Finance, Maritime and Shipping, and Healthcare. Notably, accredited staff of Diplomatic Missions and government officials are exempt from this levy.

Employers are mandated to pay $15,000 annually for Directors and $10,000 for other categories of expatriates. Furthermore, expatriate workers employed for at least 183 days within a year are liable to pay the EEL annually. Failure to comply with the provisions of the EEL, including inaccurate or incomplete reporting, can result in penalties as stipulated by the Immigration Act, 2015.

President Tinubu emphasized the importance of the EEL in fostering security, revenue generation, and bridging the wage gap between expatriates and the Nigerian labor force. He urged the Nigerian Immigration Service (NIS) to ensure smooth implementation of the levy without creating administrative obstacles for potential investors.

In his address, President Tinubu highlighted the transformative potential of the EEL in enhancing technology transfer, curbing brain drain, and boosting employment opportunities for Nigerians. He underscored the collaborative efforts between government agencies and expressed optimism about the positive impact of the initiative on Nigeria’s economic growth.

Minister of Interior, Mr. Bunmi Tunji-Ojo, reiterated the government’s commitment to job security and economic growth through the EEL. He emphasised the alignment of the project with President Tinubu’s eight-point agenda, particularly focusing on technology domestication and ensuring that jobs requiring specialised skills are reserved for Nigerians.

Chairman of the Senate Committee on Interior, Sen. Adams Oshiomhole, voiced support for the initiative, emphasizing the need to prioritize Nigerian workers for jobs within the country. He reassured the commitment of the National Assembly to support policies aimed at empowering Nigerian citizens in the labor market.

The introduction of the EEL comes amid Nigeria’s economic challenges, with efforts underway to address the prevailing hardships and stimulate economic recovery. President Tinubu affirmed the government’s dedication to improving the country’s financial outlook and fostering sustainable growth.

Enforcement of the EEL will be overseen by the Nigerian Immigration Service, operating in collaboration with relevant stakeholders under a public-private partnership model. This partnership underscores the collective commitment to driving economic progress and ensuring the welfare of Nigerian workers.