The Federal Ministry of Interior has announced the suspension of the implementation of the Expatriate Employment Levy (EEL).
President Bola Tinubu had, on Tuesday, launched the Expatriate Employment Levy (EEL). But the introduction of the levy attracted widespread condemnation from private sector groups.
The suspension of the implementation of the levy is contained in a press release issued by the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), in collaboration with key stakeholders.
According to the press release, three resolutions were reached following a meeting with Doris Uzoka-Anite, the minister of industry, trade and investment, and Olubunmi Tunji-Ojo, the minister of interior.
“The implementation of the Expatriate Employment Levy will be paused to allow for further consultations with NACCIMA and other vital stakeholders,” the statement revealed.
“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 in accordance with the resolutions made.”
A human rights organization, the Initiative Against Human Rights Abuse and Torture (INAHURAT), had written a passionate appeal to President Bola Ahmed Tinubu, urging him to reconsider the recent proposal to impose an additional $10,000 expatriate employment levy, on top of the existing $2,000 fee.
In a letter dated March 4, 2024, and addressed directly to the President, INAHURAT outlined several potential adverse effects of implementing such a significant increase in expatriate levies on Nigeria’s economy.
“The proposed implementation of an additional $10,000 expatriate employment levy in Nigeria, alongside the existing $2,000 fee, has raised concerns about potential adverse effects on the nation’s economy,” the letter stated.
The human rights group warned that the substantial financial burden of a $12,000 per expatriate annual fee could lead to closures, downsizing, or relocations of foreign businesses operating in Nigeria, resulting in job losses for Nigerian employees.
“The significant increase in expatriate levies from $2,000 to $12,000 per person per year places a substantial financial burden on foreign businesses operating in Nigeria. Many may find the additional cost prohibitive, leading to closures, downsizing, or relocations,” the letter read.
In light of the development, INAHURAT, through their lawyer Maxwell Opara, expressed gratitude to the President for reconsidering his position on the implementation of the policy. The organization has also promised to suspend the filing of a lawsuit against the President, which they had prepared to submit on Monday.
Also, in a note, analysts at KPMG described the decision to suspend the implementation of the EEL as a welcome development, saying it demonstrates that the government was listening.
KPMG said the launch of the levy had been greeted with mixed reactions by various stakeholders, many of whom had expressed concerns about the negative implications of implementing a new levy, given the current challenges experienced by many businesses in the country.
According to KPMG’s note, “we expect that the government will use this opportunity to engage in positive dialogue with critical stakeholders before revisiting the implementation of the EEL; perhaps in a form that will not only protect the interest of Nigeria and Nigerians but also help to create the right enabling environment for the economy to thrive.”
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