Amidst mounting criticism from stakeholders, the federal government has decided to suspend the imposition of the $10,000 and $15,000 expatriate levy on employers.
The move comes shortly after the launch of the Expatriates Employment Levy (EEL) Handbook on February 27, 2024, by the Ministry of Interior. This levy, mandated by the government, targeted employers who hire expatriate workers in Nigeria, with fees of $10,000 for an expatriate worker and $15,000 for a director.
However, in response to the outcry from various quarters, the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), alongside other key stakeholders, has announced a temporary suspension of the levy, administered by the Nigerian Immigration Service.
This decision was reached during a meeting attended by the Minister of Industry, Trade and Investment, the Minister of Interior, and several industry leaders including Mr. Dele Oye, president of NACCIMA, representatives from the petroleum and special economic zones associations, as well as other business groups.
The meeting concluded with the establishment of a joint committee comprising members from the Ministry of Industry, Trade and Investment, the Ministry of Interior, NACCIMA, and other stakeholders. This committee will be tasked with reviewing the EEL policy, leading to a deferment of its rollout as initially proposed.
NACCIMA, in a statement, encouraged foreign investors to maintain their business activities and investment plans in Nigeria, citing assurances provided by both ministers during negotiations as a sign of the government’s commitment to improving the investment landscape and supporting economic growth.
The concerns raised by stakeholders, including Gabriel Idahosa, President and Chairman of the Council of the Lagos Chamber of Commerce and Industry (LCCI), regarding the impact of the levy on foreign investment projects in Nigeria, have underscored the importance of the government’s decision to reevaluate the policy. Idahosa highlighted that several investors had put their projects on hold pending further clarity on the business environment in Nigeria.
