The Federal Government of Nigeria has opted to suspend the implementation of the Expatriate Employment Levy (EEL) following intense deliberations with key stakeholders.
The decision, disclosed in a statement by the National President of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Dele Kelvin Oye, marks a pivotal moment in the ongoing discourse surrounding economic policies impacting the nation.
The suspension, announced on Friday, comes on the heels of a fruitful Trade and Investment outreach spearheaded by President Bola Ahmed Tinubu in Qatar. This outreach paved the way for a constructive meeting between high-ranking officials, including the Minister of Industry, Trade and Investment, Doris Aniete, and the Minister of Interior, Olubunmi Tunji-Ojo. Noteworthy attendees included representatives from various industry bodies such as the Petroleum Technology Association and the Special Economic Zones Association, the Director General of the Nigerian Turkiye Business Council, the European Union Trade delegation head, the NACCIMA Chair of Digital Trade Group, and the representatives of the National Association of Small and Medium Scale Enterprises.
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Addressing the press, Oye elucidated on the rationale behind the temporary halt in the implementation of the EEL: “The Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture, in collaboration with key stakeholders, announces a temporary step down of the recently enacted Expatriate Employment Levy by the Federal Ministry of Interior, as administered by the Nigerian Immigration Service,” he said.
The decision to suspend the levy comes in response to mounting concerns raised by private sector entities, who warned of adverse effects on Foreign Direct Investment (FDI) and the stability of the national currency. Criticism against the levy gained traction, prompting a reassessment of its implications by the government.
Highlighting the significance of the suspension, Oye noted the need for further consultations with relevant stakeholders.
“It was unanimously agreed that the implementation of the Expatriate Employment Levy will be paused, allowing for further consultations with NACCIMA and other vital stakeholders,” he said.
Moreover, Oye disclosed plans to establish a joint committee comprising representatives from the Ministry of Industry, Trade and Investment, the Ministry of Interior, NACCIMA, and other stakeholders. This committee will undertake a comprehensive review of the EEL policy, ensuring that it aligns with the nation’s economic objectives and fosters an environment conducive to investment.
Expressing gratitude towards the Federal Government and the ministries involved, Oye underscored their willingness to engage in dialogue and consider the concerns of the business community. “This is indicative of their commitment to creating an inviting atmosphere for both local and international investors,” he remarked.
In light of the decision to suspend the EEL, the NACCIMA boss offered reassurances to investors, urging them to maintain confidence in Nigeria’s investment landscape.
“We advise all investors, both current and prospective, to continue with their business activities and investment plans in Nigeria with confidence,” he affirmed.
The statements made by Oye signal a collaborative effort between the government and private sector stakeholders to navigate economic challenges and foster sustainable growth. Stakeholders said Nigeria’s suspension of the EEL reflects its determination to position itself as a prime destination for investments through recalibration of policies to support long-term economic growth.