Job Creation : FG Rolls Out Expatriates Employment Levy

In a move expected to generate revenue, promote employment and skill development, Nigeria is poised to roll out the Expatriates Employment Levy, EEL, from March 15th, 2024.

The levy comes as part of government’s efforts to bolster the nation’s economy and empower its workforce.

The EEL which is an initiative of the Federal Government will mandate companies employing expatriates in Nigeria to pay a levy per expatriate employee yearly.

It explains that the levy aims to encourage local hiring practices and investment in domestic talent while also fostering skill transfer from expatriates to Nigerian employees.

The Minister of Interior, Olubunmi Tunji-Ojo while commenting on the initiative in Abuja said aside economic benefits, the levy is anticipated to address concerns surrounding the over-reliance on foreign expertise in various sectors.

Mr. Ojo stated that by incentivizing the employment of local talent, the government aims to create a more sustainable and inclusive economy, reducing dependency on external sources for specialized skills.

The Minister notes that the implementation of the EEL aligns with Nigeria’s broader economic agenda, which prioritizes indigenous capacity building and job creation and reflects a strategic shift towards fostering a conducive environment for local businesses to thrive and contribute to national development.

Furthermore, Mr Ojo explained that the levy was expected to boost government revenue streams, which can be allocated towards critical sectors such as education, healthcare and infrastructure development to drive the economy and enhance the quality of life for Nigerians.

The Minister who said companies operating in Nigeria are urged to ensure compliance with the EEL warns that failure may result in penalties or legal repercussions.

The deadline for compliance is set for Monday, April 15th, 2024.

President Bola Tinubu had last Tuesday launched the EEL project and handbook in the Council Chamber of the State House in Abuja.

Umbwanko Baba, Edited By Grace Namiji