Gabriel Idahosa, President and Chairman of the Lagos Chamber of Commerce and Industry (LCCI), has expressed concerns about the adverse effects of the federal government’s new Expatriate Employment Levy on investors, stating that it has prompted some to delay their projects in Nigeria.
Introduced in February, the Expatriate Employment Levy imposes a fee of $15,000 for expatriates on director level and $10,000 for those on other levels. Idahosa clarified in an interview with ARISE NEWS that this levy is distinct from the existing $2000 fee for issuing annual residence cards, emphasizing that it is an additional charge for foreign workers in Nigeria.
According to Idahosa, the implementation of this levy is already deterring investors, leading some to suspend projects. He highlighted the lack of prior disclosure to investors regarding this levy, which he believes is crucial information for decision-making.
The LCCI President addressed the notion that the levy aims to protect Nigerian workers from exploitation by foreign companies, arguing that labor laws and regulations are more appropriate for safeguarding workers’ rights. He stressed that the levy’s imposition does not directly address issues of worker protection and wage gaps.
Idahosa emphasized the importance of reviewing the levy in the national interest, warning that it could further discourage investment. He urged for careful consideration of the levy’s implications, particularly its potential impact on millions of Nigerians working abroad.
The LCCI has been actively engaged in discussions surrounding the levy, advocating for modifications to address concerns raised by stakeholders. Idahosa emphasized the need for a resolution that balances the government’s objectives with the interests of investors and the economy at large.
