[Nigeria] Expatriate employment levy paused

The Nigerian government has hit pause on a controversial annual levy that would require businesses employing expatriates to pay £12,000 ($15,000) for a director and £8,000 ($10,000) for other workers, Asaase Radio reports.

President Bola Tinubu imposed the tax at the end of February, however, it was widely condemned.

In a tweet, Nigeria’s Ministry of Interior said that the levy would be paused for “dialogue among stakeholders”.

The move reportedly follows a March 8 meeting in Abuja to discuss the levy.

The Ministry of Interior said the tax was intended to “discourage abuse” of the expatriate quota, adding that it hoped the levy would create “employment opportunities for Nigerians while closing wage gaps between expatriates and local workers”.

In a statement, Dele Kelvin Oye - national president of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) - reacted positively to the pause and praised the government for considering the implications of the levy for Nigeria’s business community.

“This is indicative of their commitment to creating an inviting atmosphere for both local and international investors,” Mr Oye said.

According to local media - citing interior ministry data - there are more than 150,000 expats in Nigeria. They primarily work in the oil and gas, construction, telecommunication and hospitality sectors.

Nigeria is one of Africa’s biggest oil producers with oil and gas exports accounting for 90 per cent of foreign exchange earnings, according to the International Monetary Fund.

At present it costs companies in Nigeria $2,000 (US) per year to obtain a residency permit for each foreign employee.

The president reportedly acknowledged that Nigerians were going through a difficult period; facing increased food, transport and commodity prices. The fall of the naira has led to a spike in foreign exchange rates and driven up inflation.

He said efforts were being made to improve Nigeria’s finances and grow its economy.

Source: Asaase Radio

(Quotes via original reporting)

The Nigerian government has hit pause on a controversial annual levy that would require businesses employing expatriates to pay £12,000 ($15,000) for a director and £8,000 ($10,000) for other workers, Asaase Radio reports.

President Bola Tinubu imposed the tax at the end of February, however, it was widely condemned.

In a tweet, Nigeria’s Ministry of Interior said that the levy would be paused for “dialogue among stakeholders”.

The move reportedly follows a March 8 meeting in Abuja to discuss the levy.

The Ministry of Interior said the tax was intended to “discourage abuse” of the expatriate quota, adding that it hoped the levy would create “employment opportunities for Nigerians while closing wage gaps between expatriates and local workers”.

In a statement, Dele Kelvin Oye - national president of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) - reacted positively to the pause and praised the government for considering the implications of the levy for Nigeria’s business community.

“This is indicative of their commitment to creating an inviting atmosphere for both local and international investors,” Mr Oye said.

According to local media - citing interior ministry data - there are more than 150,000 expats in Nigeria. They primarily work in the oil and gas, construction, telecommunication and hospitality sectors.

Nigeria is one of Africa’s biggest oil producers with oil and gas exports accounting for 90 per cent of foreign exchange earnings, according to the International Monetary Fund.

At present it costs companies in Nigeria $2,000 (US) per year to obtain a residency permit for each foreign employee.

The president reportedly acknowledged that Nigerians were going through a difficult period; facing increased food, transport and commodity prices. The fall of the naira has led to a spike in foreign exchange rates and driven up inflation.

He said efforts were being made to improve Nigeria’s finances and grow its economy.

Source: Asaase Radio

(Quotes via original reporting)