Reprieve at Last for Manufacturers
Stakeholders in the manufacturing and organised private sector welcomed the suspension of the controversial Expatriate Employment Levy by the federal government as a sign that President Bola Ahmed Tinubu's administration is a listening government, writes Dike Onwuamaeze
Manufacturers and other members of organised businesses in Nigeria heaved a sigh of relief on Friday, March 8. On that day reprieve came their way as the federal government gave heed to their agitations and suspended the rolling out of the controversial Expatriate Employment Levy (EEL), which imposed $15,000 and $10,000 on companies employing expatriates as directors and staff respectively.
The suspension was communicated to the business community by the Minister of Industry, Trade and Investment, Mrs. Doris Uzoka-Anite, who was accompanied by the Minister of Interior, Hon. Olubunmi Tunji-Ojo.
Uzoka-Anite said: “We came with NACCIMA and the organised private sector to meet with the Minister of Interior to get clarity on the EEL and we have had very engaging and fruitful discussion and agreed to set up a joint committee to look at the implications of the EEL and how to implement it; pending that, the EEL implementation and rollout will be on hold until the stakeholders convene and meet.”
On his part, Olubunmi Tunji-Ojo said: “This is about stakeholders' engagement. It's the first line in terms of the engagement process and we assure you the engagement process will continue and at the end of the day, there will only be one winner, and that will be Nigeria.”
Following the communication of the suspension of the roll out of the EEL, the President of NACCIMA, Mr. Dele Oye, and Chairman, Petroleum Technology Association of Nigeria (PETAN), Mr. Nicolas Odinuwe, who were both present at the stakeholders meeting, hailed the outcome of the meeting, describing it a significant breakthrough.
NACCIMA APPLAUDS FG
Oye, said that he was entirely grateful for the government's current stance on the policy, which had received knocks from key industry players and other stakeholders.
He said: “Our members were impacted by the proposed policy. So we want to use the opportunity to appeal to the industrialists and our various members that they should go on doing their business and that the effect or the likelihood of the proposed policy will be reviewed after we have done the stakeholders engagement.”
Similarly, Odinuwe said: “It's been a very fruitful meeting and I am happy with the outcome and see that collaboration now exists between the two the ministers that were involved in it.
“And I would hope that the joint committee being set up will work, quickly to make sure that, all nerves are calm so that the industry can grow.”
NECA, CPPE HAIL EEL SUSPENSION
Also reacting to the postponement of the implementation of the EEL, the Nigeria
Employers' Consultative Association (NECA) and the Centre for the Promotion of Private Enterprise (CPPE) commended the federal government for putting on hold the implementation of the Expatriate Employment Levy (EEL).
The Director General of NECA, Mr. Adewale-Smatt Oyerinde, said: “We commend the federal government through the Minister of Interior and the Minister of Industry, Trade and Investment for their roles in putting the EEL on hold.
“While we appreciate the objectives of the scheme and the need to address gaps in the management of expatriate employment in Nigeria, the decision by the government is nothing short of genuine concern for the plight of organised businesses.
“This has further affirmed President Bola Ahmed Tinubu's administration as a listening one. The speed of response to organised businesses' concern was commendable and worthy of note.”
Speaking in the same vein yesterday, the Chief Executive Officer of CPPE, Mr. Muda Yusuf, said that the suspension of the EEL “is a demonstration of the fact the Tinubu's administration is responsive, democratic and inclusive in its governance process.
“It shows that the administration is a listening government. Responsiveness to the concerns of stakeholders is a critical attribute of true democracy.”
Yusuf, however, stressed that there are already extant laws and regulations within the framework of the Nigeria Immigration Act and the Expatriate Quota Handbook that squarely addressed the outcomes contemplated in the EEL.
He said: “What needs to be done differently is to strengthen the institutional and regulatory effectiveness in the Ministry of Interior and the Immigration Service to ensure compliance and enforcement.
“The truth is that relevant institutions have over the years been considerably compromised. These are the gaps that need to be addressed.
“We really do not need a new policy, regulation or handbook on the employment of expatriates. A new regulation or policy will be superfluous. The current regulations or handbook could be tweaked, if necessary.”
He pointed out that evidence of regulatory weaknesses is visible from the numerous instances of expatriates operating in the retail sector in the open markets, competing with Nigerian market women and men.
“We surely do not lack expertise in retail trading. But we have seen cases of some expatriates taking up shops in our traditional markets. Many of our indigenous traders in the markets have been displaced by these expatriates because they cannot compete with them.
“There are similar concerns expressed by our indigenous retailers in the computer and electronics, textiles and fabrics, and fashion accessories where expatriates are competing with them at the retail end of the market.
“Some of these (expatriate owned) companies dominate the entire value chain as manufacturers, distributors and retailers.
“These are some of the issues that need to be addressed by the immigration service and the ministry of interior. Competition with our struggling market women and men is clearly an unfair competition,” Yusuf said.
PRIVATE SECTOR OUTCRY
Prior to the announcement of the suspension of the levy, the Nigerian organised private sector has raised an outcry against the new levies, describing it as disincentive to foreign and domestic investors and fostering the perception that Nigeria can carry on without productive inputs of foreigners in its economy.
They lampooned the proposed EEL as “exploitative, extortionist and a contradiction that cannot be explained” at a period the country is campaigning strenuously for Foreign Direct Investments (FDIs).