Nigeria suspends controversial Expatriate Employment Levy amid backlash
Nigeria has temporarily suspended a controversial annual levy introduced by President Bola Tinubu over a week ago to allow for more dialogue between relevant stakeholders, following widespread criticism.
The Expatriate Employment Levy (EEL) required businesses employing expatriates to pay $15,000 for a director and $10,000 for other workers. The tax, implemented just over a week ago, faced both internal and external backlash from various sectors and even the European Union.
In a statement posted on X, the Ministry of Interior indicated that the levy would be put on hold for a period of "dialogue among stakeholders." This decision follows a meeting held on Friday in Abuja to discuss the implications and concerns raised by the business community.
“We understand the concerns raised by the stakeholders, and we are committed to finding solutions that promote investment while safeguarding the interests of Nigerians,” the Minister of Interior, Dr. Olubunmi Tunji-Ojo, is quoted.
The Ministry justified the tax as a measure to "discourage abuse of the expatriate quota system and promote the development of the local workforce… to create employment opportunities for Nigerians while closing wage gaps between expatriates and local workers."
The national president of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye, welcomed the temporary suspension, commending the government for acknowledging the potential impact on Nigeria's business community. In a statement, Oye stated, "This is indicative of their commitment to creating an inviting atmosphere for both local and international investors," the BBC quoted.
