The Nigerian government announced the temporary suspension of the Expatriate Employment Levy on March 8, pending further consultation with stakeholders.

Key Points:

• Full implementation was set to launch on March 15 through April 15, 2024.
• The decision to suspend the EEL followed a meeting with the Federal Ministry of Interior, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and other stakeholder trade and commerce associations and agencies.
• A joint committee will be formed for in-depth review of the EEL initiative comprised of members from the Ministry of Industry, Trade and Investment, Ministry of Interior, NACCIMA and other stakeholders.
• The new rollout of the EEL will align with the resolutions made from the joint committee.

Additional Information: EEL guidelines were published on Feb. 27. The EEL initiative reflects Nigeria’s Renewed Hope Agenda, unveiled in 2023 as a strategy to build a trillion-dollar economy within the next decade. Minister of Interior Dr. Tunji-Ojo said, “This initiative underscores our commitment to creating employment opportunities, enhancing revenue generation and fostering economic growth though public-private partnerships.” A summary of the EEL guidelines can be found here.

BAL Analysis: The announcement of the EEL was met with widespread criticism due to its potential negative impact on foreign direct investment, especially considering the current economic climate in Nigeria. This decision to suspend the EEL implementation is a positive step, showing a commitment to collaborative dialogue among stakeholders. BAL will continue to monitor further developments.