The recent move by the Federal Government to introduce an expatriate levy of between $10,000 to $15,000 has led to the suspension of projects by foreign investors, the President and Chairman of the Council of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa has said.
The LCCI president said this during a monitored interview on Arise Tv on Thursday.
Idahosa said, “Since the announcement, a couple of investors put a hold on various projects that are in the pipeline. We know because they are our members. They are saying they have to see if they can continue doing business in Nigeria going forward.
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On February 27, 2024, the federal government launched the Expatriates Employment Levy (EEL) Handbook.
The levy is a government-mandated contribution imposed on employers who employ expatriate workers in Nigeria.
It imposes $10,000 for an expatriate worker and $15,000 for a director.
The LCCI president dismissed any plans to sue the government over the issue but he said there are ongoing discussions between the government and stakeholders.
Idahosa said, “A lot of conversations are going on as we speak between the private sector and the government. A lot of conversations by the foreign missions in Nigeria have a very important stake in this country and they believe that the Nigerian economy and their economy have a lot to gain if it is resolved in an amicable manner.
“There is the other dimension of AfCFTA, the African missions in Nigeria are also in conversation that you don’t want to do this to fellow African country. First, if we want to do it at all, a whole range of modifications needs to be done.”
He said the Nigerian government has to consider the countries to target and the sector before implementing the levy.
The LCCI boss added, “Which industries, which countries? A blanket application of this kind of levy will be very destructive. It is very unlikely that this will end in litigation. The reason is that there is a wide range of interest groups both local and outside are having this conversation.
“We don’t want to put millions of Nigerians working abroad in jeopardy. So, it is likely that this conversation will lead to a resolution that will address most of the concerns that have been raised.”