On 27 February 2024, the Federal Government of Nigeria, represented by the Federal Ministry of Interior, launched the Expatriate Employment Levy (EEL) for employers of expatriates in Nigeria. This levy is to be administered by the Nigerian Immigration Service through the online portal – eel.interior.gov.ng. A Handbook guiding the implementation of the EEL was also released same day and can be downloaded here.
The EEL Explained
The Expatriate Employment Levy (EEL) is a new government-mandated contribution imposed on employers who engage expatriate workers in Nigeria. This levy serves as a fiscal measure designed to address certain socio-economic considerations within the country.
Objectives of the EEL
The objectives of the EEL include promoting skill transfer and knowledge sharing, balancing economic growth and social welfare, enhancing collaboration between public and private sectors, and addressing demographic shifts.
The EEL Amount
Employers of Expatriates covered by the EEL are required to pay USD 15,000 per expatriate, for Directors; and USD 10,000 per expatriate for other categories of expatriates. This levy is to be paid annually and returns of required documentations filed alongside the payment of the Levy.
Eligibility and Scope of the EEL
Employers of varying sizes operating in Nigeria, including multinational corporations and SMEs, are liable to pay the EEL. Expatriate workers subject to the levy are non-citizens employed within Nigeria on expatriate quota or those on specific work permits or visas who have spent an aggregate of 183 days or more within Nigeria during a fiscal year.
The Expatriate Employment Levy (EEL) also applies in specific employment circumstances, such as renewal of employment contracts, or the transition of an expatriate’s status from visitor to employee within Nigeria.
In instances of cross-border assignments or secondments, where expatriates temporarily work in a foreign country, the EEL is applicable if the expatriate occupies a Quota Position in a company operating within Nigeria.
Temporary workers, defined as expatriates holding Temporary Work Permits for Seasonal and Short-Term Employment in Nigeria, are subject to the EEL if they spend an aggregate of 183 days or more within Nigeria during a fiscal year.
Additionally, if expatriates engage in Seasonal and Short-Term Employment for different companies, they are exempt from the EEL unless they spend an aggregate of 183 days or more in Nigeria within a fiscal year across multiple employers. However, the last employer bearing Immigration Responsibility for such expatriates shall be liable for EEL payment when due.
Exemptions from the EEL
All Staff of Diplomatic Missions, government officials and International Agencies accredited to Nigeria as well as the dependents of all the categories of Expatriates in Nigeria are exempted from payment of the EEL. However, this exemption shall not apply to Dependants that are confirmed to be engaged in any employment while resident in Nigeria.
Role of the Nigeria Immigration Service (NIS)
The Nigeria Immigration Service (NIS) plays a crucial role in determining which expatriates fall within the EEL purview, enforcing the levy, and utilizing data generated from the EEL project for national security and economic interests.
Reporting and Compliance
Both government and employers have responsibilities regarding reporting and compliance. Employers are required to maintain comprehensive records, report expatriate employment details accurately and timely, and notify relevant authorities of any changes in employment circumstances.
Penalties and Sanctions
Inaccurate or incomplete reporting may lead to penalties, including fines and imprisonment, as per the Immigration Act, 2015. Further sanctions are outlined in the Immigration Regulations, 2017.
Procedure for Payment
Employers can make EEL payments through the EEL portal provided by the Ministry of Interior. Detailed instructions for payment can be found on the portal – eel.interior.gov.ng.
For further inquiries and clarifications, please reach out to the EEL Help Desk via email at contactus@eel.interior.gov.ng or call +234 708 064 7200 or send us an email via clients@vi-m.com.
We encourage all employers of expatriates to familiarize themselves with these new regulations and ensure compliance to avoid any potential penalties or sanctions.