MAN, LCCI Hail FG’s Suspension of Expatriate Employment Levy

•CSO urges FG to implement policy in national interest

Chuks Okocha in Abuja and Dike Onwuamaeze in Lagos

The Manufacturers Association of Nigeria (MAN) and the Lagos Chamber of Commerce and Industry (LCCI) yesterday, commended the federal government for halting the implementation of the Expatriate Employment Levy (EEL).

This comes just as the National Convener of Labour & Civil Society Coalition (LASCO), Tony Erha, stressed the importance of retaining the EEL in spite of the mounting pressure for its cancellation by some vested interest groups.

The federal government had announced $15,000 and $10,000 levies per expatriate director and staff respectively employed by any Nigerian company but later suspended its implementation last Friday, to enable wider consultations.

Reacting to the suspension of the EEL, Director General/Chief Executive Officer of MAN, Mr. Segun Ajayi-Kadir, stated, “MAN deeply appreciates the swift intervention of the Minister of Finance and Coordinating Minister of the Economy.

“We acknowledge the important role of the Minister of Industry, Trade and Investment. We equally recognise the support of the Chairman of the Presidential Committee on Fiscal Policy and Tax Reform.”

He added: “Quite importantly, we commend the Minister of Interior for doing the needful in the interest of domestic and foreign private sector investors in Nigeria.

“There is no doubt that the anxiety that enveloped the business community following the introduction of the levy has abated.

“Also, the international business community, particularly those with whom we have signed trade agreements, would also be reassured of our commitment to the creation of a congenial business environment.”

He said MAN had earlier made a representation to Mr. President and copied the Minister of Finance and Coordinating Minister of the Economy; the minister of Industry, Trade and Investment as well as the Minister of Interior, to discontinue the enforcement of the levy and followed up with the aforementioned ministers.  

Speaking in the same vein, the Director General of LCCI, Dr. Chinyere Almona, commended the recent decision by the federal government to suspend the controversial EEL.

Almona said: “This move demonstrates a proactive stance by the government in responding to the concerns of the business community and fostering conducive environment for economic growth and development, which the chamber advocates for vigorously.

“The chamber views the suspension as a positive response to the grave concerns of the private sector as highlighted by the chamber and other private sector advocacy institutions last week.”

She added that the suspension would, “promotes cordial relationship between government and the business community towards a better business environment.

“We urge the government at all levels to remain sensitive to the concerns of the private sector to enhance the profitability and sustainability of businesses in Nigeria.”

She argued that by suspending the EEL, “the Federal Government of Nigeria has demonstrated a willingness to engage with the business community and adapt policies to better align with economic realities.”

The LCCI, therefore, extended its appreciation to the federal government for its decision to suspend the EEL and, “looks forward to continued collaboration in advancing the interests of the Nigerian business community.”

CSO to FG: Implement Expatriate Employment Levy in National Interest

Meanwhile, the National Convener of LASCO, Tony Erha, has stressed the importance of retaining the EEL.

LASCO, stated that the federal government, more than ever, needed to prioritise policies that advance the interests of our nation and its people, stressing that the EEL was a cornerstone of such policies and should be upheld for the greater good of Nigeria.

Erha, particularly advised the federal government not to capitulate to demand for its cancellation, adding that there were significant advantages the EEL brings to Nigeria’s economic landscape, stressing that those criticising it were doing so only for selfish reasons

A statement issued in Abuja, yesterday, against the backdrop of the federal government’s decision to temporarily suspend the implementation of the EEL to allow for more stakeholders’ engagement, Erha pleaded for the retention of the levy.

The LASCO National Convener underscored the manifold benefits of the levy, emphasising its pivotal role in income generation, employment provision for the nation’s youth, and the promotion of local content development.

According to Erha; “Income generation is vital for the sustenance of any economy. The expatriate employment levy serves as a crucial source of revenue for the government, contributing to national development initiatives and infrastructure projects.”

Erha, particularly underscored the role of the levy in addressing the issue of unemployment among Nigerian youth, saying that unemployment remains a pressing concern in our country, particularly among the youth.

He further said; “By incentivising companies to prioritise local talent over foreign hires, the levy creates job opportunities for young Nigerians, thereby fostering youth empowerment and economic inclusion.

“The retention of the expatriate employment levy is instrumental in promoting job creation and reducing dependency on foreign expertise. The importance of nurturing local content development across various industries cannot be overemphasised.

“By levying a fee on the employment of expatriates, the government encourages companies to invest in local talent and skills development, ultimately fostering indigenous capacity-building and technological advancement.

“We must prioritise the development of our local workforce and industries. The expatriate employment levy incentivises companies to transfer knowledge and expertise to Nigerian workers, thus enhancing our capacity for innovation and economic self-reliance.”