Nigeria: Expatriate Employment Levy Introduced for Companies Hiring Foreign Nationals in Long-Term Assignments

• Eligibility.
• • Private sector employers hiring foreign nationals on a long-term assignment (for a minimum of 183 days within a non-consecutive 12-month period) intending to file a work or residence application (or renewal) or those intending to change their employee’s status from business visitor to work authorized are affected.

• • Importantly, this means that employers will not need to pay this levy for foreign nationals under a Temporary Work Permit.
• Payment. The related guidelines state that affected employers must pay a once-off annual payment of USD 15,000 for each foreign national director and for all other positions, they must pay USD 10,000. While the fee may be displayed in USD on the online portal, payment must be made in NGN based on the Central Bank of Nigeria daily exchange rate.  Previously, companies were not required to pay a government levy for hiring foreign nationals.
• Online portal. Employers must utilize the EEL portal to submit levy payments.
• Expatriate Employment Levy Card. Once employers have successfully registered a foreign national on the portal, a digital card notification (necessary for entering and exiting Nigeria) will be sent to the foreign national via the email used when registering the foreign national.

The levy increases the costs of hiring long-term foreign workers in Nigeria, where the government processing fees were already relatively high as compared to other countries in the region.

This initiative may decrease foreign investment into Nigeria, and may decrease the number of foreign nationals permanently residing in the country.

The Nigeria government is implementing this policy, among other goals, promote skills transfer and knowledge sharing as well as to balance economic growth and social welfare.

There are several aspects of the EEL that still need to be clarified by the authorities. We are monitoring the situation and will report on any clarifications that the authorities may provide.

The government may introduce further rules aimed at retaining local talent in sectors with talent shortages. Affected applicants and their employers should contact their immigration professional for case-by-case guidance.