Nigeria imposes yearly levy for companies with expatriate workers, necessitating payments of $15,000 (£12,000) for directors and $10,000 for other employees. This measure is designed to incentivize foreign businesses to hire more Nigerian workers. Diplomatic personnel and government officials are exempt from this requirement.
President Bola Tinubu issued a warning about the possibility of the levy being abused in order to discourage investors. During his speech at the launch of the Expatriate Employment Levy (EEL) handbook, he stressed the government's objective of increasing revenue while simultaneously fostering employment opportunities in the local community. This purpose of the tax, which is to promote a balance in job prospects between Nigerian nationals and expats, was brought to the attention of the public by the President.
“„The goal is to close wage gaps between expatriates and the Nigerian labor force while increasing employment opportunities for qualified Nigerians in foreign companies in the country.- President Bola Tinubu
Nigeria is home to more than 150,000 foreign nationals, most of whom are working in the oil and gas, construction, telecommunication, and hospitality industries, as reported by local media outlets that relied on information from the Ministry of the Interior.
According to the International Monetary Fund, Nigeria is one of the most important oil producers in Africa, and the country's economy is strongly dependent on its oil and gas exports, which account for ninety percent of its money earned in foreign exchange.
Companies in Nigeria are already required to pay $2,000 annually for each foreign employee to obtain a residency permit. This latest measure comes amid Nigeria's severe economic crisis, considered the worst in a generation, leading to widespread hardship and discontent in recent months.
On Tuesday, labor unions and government workers staged protests to voice their grievances against the economic challenges facing the country. Mr. Tinubu recognized the challenging times Nigerians are facing and assured that measures are being taken to enhance the country's financial situation and stimulate economic growth.
The levy applies to workers who engage in employment for a minimum of 183 days in a given year. Individuals or organizations can face fines of up to three years and jail terms of up to five years if they do not comply with the plan. This includes those who fail to give accurate information.
The levy will be enforced by the Nigerian Immigration Service, according to reports from local media that cited Interior Minister Olubunmi Tunji-Oj as the source of the information. To carry out the operation, a public-private partnership model will be used, which will involve the government, the immigration service, and a private company.
Nigerian economist Abubakar Abdullahi expresses optimism about the levy's impact on the country's development and its attractiveness to potential investors.
He states, "I believe Nigeria stands to benefit from this levy as more companies will start looking inwards as there are qualified Nigerians from all sectors."