The Federal Government has implemented a mandatory annual levy targeting organizations hiring expatriate workers. Under the new policy, companies are required to pay $15,000 (£12,000) for employing a director and $10,000 for other expatriate employees
The initiative aims to incentivize foreign companies to hire more Nigerian workers, with exemptions granted to diplomatic mission staff and government officials.
President Bola Tinubu emphasized that while the levy aims to boost revenue and promote indigenization, it should not deter potential investors. Speaking at the launch of the Expatriate Employment Levy (EEL) handbook, Tinubu stressed the goal of narrowing wage disparities between expatriates and Nigerian workers while expanding job opportunities for qualified locals in foreign firms operating in the country.
According to local media reports citing data from the interior ministry, Nigeria hosts over 150,000 expatriates primarily engaged in sectors such as oil and gas, construction, telecommunications, and hospitality. The country, a significant oil producer in Africa, heavily relies on oil and gas exports, which account for 90% of foreign exchange earnings, as per the International Monetary Fund.
Previously, companies in Nigeria were required to pay $2,000 annually for a residency permit for each foreign employee. The introduction of the EEL coincides with Nigeria grappling with its worst economic crisis in decades, prompting widespread hardship and discontent among the populace.
Addressing the economic challenges, President Tinubu acknowledged the difficulties faced by Nigerians and reassured efforts to bolster the nation’s finances and stimulate economic growth. The levy applies to employees working for a minimum of 183 days per year and imposes penalties, including fines and jail terms, for non-compliance or inaccurate reporting.
The enforcement of the levy falls under the purview of the Nigerian Immigration Service. Interior Minister Olubunmi Tunji-Oj outlined plans for its implementation, highlighting a public-private partnership involving the government, immigration service, and a private firm.
Economist Abubakar Abdullahi expressed optimism about the levy’s potential benefits, asserting that it will not deter investors but rather encourage inward-looking investment. Abdullahi believes Nigeria stands to gain from the policy, as it will prompt more companies to prioritize local talent across various sectors.
