NECA raises the alarm over expatriate employment levy by FG
By Temitope Adebayo
The leadership of Nigeria Employers Consultative Association of Nigeria (NECA) has expressed concerns over Expatriate Employment Levy recently introduced by Federal Government.
This is just as the association raised the alarm that this development would be counterproductive drive that would jeopardise the industrialisation goal by Otunba Bola Ahmed Tinubu’s regime if it implementation is not set aside.
He advised government to always engaged with Organised Private Sector (OPS) as such involvement would be essential to finding equitable solutions that promote economic interests and support sustainable business growth.
The director general, Adewale-Smatt Oyerinde who made this known said, the move will cause more damage to the economy than contributing to the growth.
Citing the planned levy of US$10,000 & US$15, 000 levy on any employer with expertriare employees would discourage foreign investors as his reason for the alarm, the DG said: “The levy of between US$10,000 to US$15,000 on employers that employ expatriates when Nigeria is actively seeking FDI is not only exploitative and extortionist, it is also a contradiction that cannot be explained.”
According to Oyerinde, the move will not only furthermore frustrate Federal Government’s on-going Fiscal and Monetary reforms but it will also serve as a disincentive to Foreign Direct Investment (FDI) among many other unintended negative consequences.
Moreover, Oyerinde said, “while we absolutely support the federal government’s objective of developing the local workforce, we have, in fact, been at the forefront of promoting skills transfer, Technical Skills Development and employment generation. However, the recently launched initiative of the Ministry of Interior has the potential to create more fundamental economic and socio-labour distortions.
READ ALSO: Price of refilling cooking gas in Nigeria
“The imposition of US$15,000 and US$10,000 on organizations that employ expatriates at a time when businesses are shutting down and leaving the country in droves is worrisome. Recent results of many businesses have shown massive losses, a situation that could potentially increase the level of unemployment with dire socio-economic consequences.”
While raising Organised Businesses’ concern on the legality and appropriateness of the Levy, the DG stated that, “we are concerned at the legality and appropriateness of the Expatriate Employment Levy (EEL) as well as its effect on the economy. The provisions of a Handbook can never over-ride clear provisions of extant laws in Nigeria, especially the 1999 Constitution of the Federal Republic of Nigeria, Immigration Act and the Local Content Act among others.”
According to him, “the Ministry of Interior and indeed, Government cannot impose a tax or levy without appropriate legislation. For instance, Section 59 of the Nigerian Constitution requires that any imposition of tax, duty, fee or levy must be backed by an Act of the National Assembly. Levies that are imposed without complying with the provisions of section 59 of the Constitution offends the Constitution and are illegal.”
