Expatriate levies exploitative, disincentive to investment, NECA warns

THE Nigeria Emplo yers’ Consultative Association ( NECA) has faulted the newly- released expatriate e mployment levy ( EEL) handbook by the Federal Ministry of Interior, saying the levy imposed on employers keeping expatriates was not only exploitative and extortionist but also a disincentive to investments.

The handbook is purportedly aimed at enhancing skills transfer in Nigeria, however, but the employers' body raised the alarm that the levies ranging from $ 10,000 to $ 15,000 imposed on employers that hire expatriates if implemented, would not only frustrate the federal government’s ongoing fiscal and monetar y reforms but would also serve as a disincentive to foreign direct in vestments ( FDIS).

Speaking in Lagos, Director- General of NECA, Adewale- Smatt Oyerinde, said since the body supports the FG’S objective of developing the local workforce, it has always been at the forefront of promoting skills transfer, through technical skills development and emplo yment generation. Oyerinde is, however, worried that the new policy has the potential to create more fundamental economic and socio- labor distortions. According to it, the imposition of $ 15,000 and $ 10,000 on organisations that employ expatriates at a time when businesses are shutting down and leaving the country in droves is worrisome.

He stressed that a reciprocal implementation of the same policy by other countries would have dire consequences on the careers and progress of Nigerians who are expatriates in other countries.

He recalled the recent results of many businesses that have shown massive losses, a situation he said could potentially increase the level of unemployment with dire socio- economic consequences.

Oyerinde, who acknowledged government's objectives emphasised the importance of pursuing strategies that could foster a conducive investment climate without imposing an undue burden on businesses.

According to him, collaboration between the private sector and government is essential to finding equitable solutions that promote economic interests and support sustainable business growth. While raising organised businesses’ concern on the legality and appropriateness of the levy and its effect on the economy, Oyerinde said the provisions of the handbook could 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.