The Federal Government of Nigeria suspends Expatriate Employment Levy

The Federal Ministry of Interior (the "Ministry") has announced the postponement of the implementation of the Expatriate Employment Levy (the "Levy"). The decision to postpone the implementation was reached at a meeting held on Friday, 8th March 2024 with the Honourable Minister of Industry, Trade and Investment, the Honourable Minister of Interior, the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (the "NACCIMA"), the President of the Petroleum Technology Association, the President of the Special Economic Zones Association, and other industry stakeholders.

In our earlier publication here, we had reported the launch of the Levy which was to be operated on a public-private partnership model between the Federal Government of Nigeria represented by the Federal Ministry of Interior as the guarantor, and the Nigeria Immigration Service as the implementing agency.

The Ministry stated that the decision was reached to allow for consultations with key stakeholders. It was also resolved that 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 Levy.

Various concerns have been raised across different sectors regarding the potential implications of the Levy and it appears that the Nigerian government is now taking a step back to carefully consider these concerns. In a subsequent press release by the Ministry, the Minister Dr. Olubunmi Tunji-Ojo stated that the Federal Government is committed to listening to stakeholders and noted the importance of striking a balance between attracting foreign investment and prioritizing human capital development to benefit Nigerians.

In view of this update, the registration of expatriate employees for the Levy has been stayed until further notice.