The recent introduction of an expatriate levy by the Federal Government, ranging from $10,000 to $15,000, has triggered apprehension among foreign investors, leading to the suspension of several projects, according to Gabriel Idahosa, the President and Chairman of the Lagos Chamber of Commerce and Industry (LCCI).
Speaking during an interview on Arise TV, Idahosa disclosed that since the levy announcement, numerous investors, many of whom are LCCI members, have halted various ongoing projects. Expressing uncertainty about the future of their business operations in Nigeria, these investors are reportedly assessing the feasibility of continuing their ventures in the country.
The Expatriates Employment Levy (EEL) Handbook was officially launched by the federal government on February 27, 2024. This levy, mandated by the government, imposes financial contributions on employers hiring expatriate workers within Nigeria, charging $10,000 for each expatriate worker and $15,000 for directors.
Despite the concerns raised, Idahosa indicated that the LCCI has no immediate plans to litigate against the government. Instead, ongoing discussions between private sector representatives and government officials are underway to address the issue.
Highlighting the significance of amicable resolutions, Idahosa emphasized the involvement of foreign missions in Nigeria, stressing the potential benefits of resolving the matter diplomatically. Additionally, he pointed out the implications of the African Continental Free Trade Area (AfCFTA), with African missions in Nigeria urging cautious consideration before implementing such levies on fellow African nations.
Moreover, Idahosa underscored the importance of targeted application, urging the government to assess specific industries and countries before enforcing the levy. He warned against blanket applications, citing potential adverse effects on various sectors.
In conclusion, Idahosa expressed optimism that ongoing discussions would lead to a resolution addressing the concerns raised by stakeholders, both domestically and internationally. He emphasized the need to safeguard the interests of millions of Nigerians working abroad while finding a mutually beneficial solution to the expatriate levy issue.
