The federal government has announced the temporary suspension of the Expatriate Employment Levy (EEL), a recent policy introduced by the Minister of Interior, Olubunmi Tunji-Ojo.
The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), along with key partners, revealed the postponement in a press release following productive discussions with relevant stakeholders.
The EEL policy aimed to levy taxes on foreign workers, incentivizing companies to prioritize the employment of qualified local individuals for equivalent roles. However, the policy faced criticism, with concerns raised about its potential negative impact on foreign investment and economic efficiency.
In response to these concerns, the implementation of the Expatriate Employment Levy will be paused, allowing for further consultations with NACCIMA and other vital stakeholders.
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 decision to defer the rollout of the EEL follows widespread apprehension within the Nigerian private sector, with organizations such as the Nigeria Employers’ Consultative Association (NECA) expressing reservations about the potential adverse effects on ongoing fiscal reforms and foreign investment initiatives.
