Nigeria: Expatriate Employment Levy Introduced for Companies Hiring Foreign Nationals

Update March 8, 2024: The implementation of the levy has been deferred pending further government consultations.

The Nigerian Immigration Service (NIS) has introduced an Expatriate Employment Levy (EEL), a government revenue collection initiative meant to, among other goals, encourage companies to employ local talent. To pay the levy, 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, must pay a once-off annual payment of USD 15,000 for each foreign national director. For all other positions, they must pay USD 10,000. Employers must utilize the EEL portal to submit these payments. Employers of foreign nationals may be exempt from this requirement if the assignment duration is less than 183 days in a non-consecutive 12-month period from the date of entry into Nigeria. Previously, companies were not required contribute to a government levy for hiring foreign nationals. Companies failing to comply with this requirement will incur penalties. This is the first of this type of a high levy for this purpose in Africa.