Nigeria has implemented a new mandatory annual levy targeting organizations employing expatriate workers.
This is part of efforts to promote local employment opportunities and boost revenue.
The levy requires companies to pay $15,000 for a director and $10,000 for other categories of expatriate employees.
The move, announced by President Bola Tinubu during the launch of the Expatriate Employment Levy (EEL) handbook, aims to encourage foreign companies to hire more Nigerian workers while closing wage gaps between expatriates and the local labor force.
President Tinubu emphasized that the levy should not deter potential investors but rather foster a balanced employment landscape between Nigerians and expatriates. He stressed the importance of clear implementation to achieve the intended objectives of the program.
According to data from the interior ministry, Nigeria hosts over 150,000 expatriates primarily working in sectors such as oil and gas, construction, telecommunications, and hospitality. The imposition of the levy comes amidst Nigeria’s worst economic crisis in recent memory, prompting widespread protests against economic hardships.
Acknowledging the challenges faced by Nigerians, President Tinubu reassured efforts to improve the country’s financial situation and stimulate economic growth.
The levy applies to expatriate employees working for at least 183 days in a year and carries penalties of up to three years in jail for non-compliance, including providing inaccurate information. The Nigerian Immigration Service will oversee enforcement, operating in collaboration with a private firm under a public-private partnership model.
Interior Minister Olubunmi Tunji-Oj highlighted the partnership’s framework, underscoring its role in effectively administering the levy and ensuring compliance with regulations.