The Nigerian government has announced a temporary pause on the implementation of the Expatriate Employment Levy (EEL). This levy, recently introduced by President Bola Tinubu, aimed to regulate the employment of foreign workers in Nigeria. However, it sparked widespread criticism from private sector groups, including the influential Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).
These concerns prompted a productive meeting between NACCIMA, key stakeholders, and government ministers. The outcome of this meeting resulted in a three-point resolution. Firstly, the implementation of the EEL will be put on hold to allow for further consultations with NACCIMA and other relevant parties. This pause ensures that all voices are heard and concerns are addressed before the levy takes effect.
Secondly, a joint committee will be formed. This committee will be tasked with reviewing the EEL policy in its entirety. Their objective is to ensure the policy aligns with Nigeria’s broader economic goals. This review process is crucial in finding a balance between attracting foreign expertise and promoting opportunities for the domestic workforce.
Finally, the initial rollout plan for the EEL has been deferred. This means the levy won’t be implemented as initially proposed until the joint committee completes its review. This deferral allows time for revisions and ensures a smoother implementation process once the policy is finalized.
The decision to pause the EEL demonstrates the Nigerian government’s commitment to open dialogue and collaboration. It reflects their willingness to listen to industry concerns and work towards a policy that fosters a business-friendly environment. This is positive news for both local and international investors. Businesses with ongoing or planned operations in Nigeria can continue their activities with confidence. The government’s willingness to engage in discussions and consider revisions to the EEL policy reinforces their commitment to creating an inviting atmosphere for investment and supporting economic growth.
NACCIMA and its partners have expressed their continued dedication to working hand-in-hand with the government. Their shared goal is to ensure that policies, like the EEL, are aligned with the nation’s economic objectives. By working together, they aim to position Nigeria as a prime destination for investments that will propel the country’s economic development.
