On February 27, 2024, the Federal Government of Nigeria, through the Federal Ministry of Interior, released a Handbook on Expatriate Employment Levy (“EEL or the Levy”) 2024 (“the Handbook”).

The Handbook introduced a compulsory Levy payable by employers who employ expatriate workers in Nigeria. The introduction of this Levy placed Nigeria among the host of countries such as Saudi Arabia as far back as 1 2017, and Malaysia in 2018, who introduced similar levies to regulate the employment of foreign workers in their respective countries.

It is noteworthy that on March 8, 2024, representatives of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture communicated to the general public (vide a press release) that the Federal Government had suspended the implementation of the Expatriate Employment Levy, pending further review and consultation with relevant stakeholders. The Ministry of Interior further confirmed that it was engaging in constructive dialogue with members of the organized private sector.

Undoubtedly, the imposition of the Levy which comes with cognisable economic and legal implications, particularly as it relates to affected businesses, has given rise to controversy, in recent times. Thus, although we are not aware of any official communication from the Federal Government, at the time of this publication, it is probable that the reported supposed suspension of the Levy is borne out of stakeholders’ concerns as to the impact of the levy. that the imposition may give rise to some macro-economic issues.

This article reviews the Handbook on Expatriate Employment Levy, 2024, and analyses the potential legal and economic implications of the Handbook and the imposed Levy, if implemented.