Nigeria enforces a yearly levy on expatriate employees

Nigeria has introduced a compulsory yearly levy for companies hiring foreign workers, charging $15,000 for directors and $10,000 for other employees. The aim is to prompt foreign companies to hire more Nigerians. Diplomatic mission staff and government officials are exempt.

President Bola Tinubu has cautioned against misusing the levy to deter investors. He stressed the government’s goal to boost revenue and indigenization. The objective is to balance job opportunities between Nigerians and expatriates by reducing wage gaps. Over 150,000 expatriates, primarily in oil, construction, telecommunications, and hospitality sectors, reside in Nigeria.

The country relies heavily on oil exports for foreign exchange earnings. Previously, companies paid $2,000 annually per foreign employee for residency permits. This measure comes amid Nigeria’s severe economic downturn, sparking protests against hardships. Tinubu acknowledged challenges and pledged to stabilize finances. The levy applies to employees working at least 183 days yearly, with penalties for non-compliance. Enforcement will be managed by the Nigerian Immigration Service under a public-private partnership. Economist Abubakar Abdullahi believes the levy will benefit Nigeria by encouraging companies to hire qualified Nigerians.