Implementing Nigeria’s New Expatriate Employment Levy
Further to our update on the introduction of the Expatriate Employment Levy (EEL) by the Federal Government of Nigeria dated February 29, 2024, the Federal Ministry of Interior (FMI) has published the implementation guidelines for the enforcement of the EEL.
The Expatriate Employment Levy (EEL) is a statutory contribution of government to employers that engage the services of an expatriate in Nigeria. It was presented to the Nigerian Government on 27 February 2024.
This levy is mandatory for employers hiring foreign workers in Nigeria, aiming to facilitate knowledge and skill transfer from expatriates to local employees through training and mentorship programs
This summary contains information on the implementation and application of the EEL to relevant stakeholders.
Need-to-know Information!
Implementation Date: hereby announced for implementation from March 15, 2024 (the “Effective Date”), up to April 15, 2024 (the “Deadline”), after an official announcement by the FMI through a Public Notice dated February 29, 2024.
Scope of Application: Expatriates have a scope ranging from Directors, Non-Working Dependents, and Non-Director for purposes of implementation. Within the system, employers are required to register their expatriate employees and their dependents where applicable.
Registration: Employers will, from the date hereof, commence their registration processes through the website https://eel.interior.gov.ng/auth or the EEL Mobile Application (the “Digital Platforms”). The registration process would include setting up the company profile, allocation of quotas, registration of the expatriate/dependents, and verification of employee KYC information. Guidelines and details to do each of the above are given on the User Manual available on the digital platforms.
Payment
Payment is to be made in Naira (₦) based on the Central Bank of Nigeria (CBN) daily exchange rate.
Payment for Directors is USD ($) 15,000 and non-Director USD ($) 10,000.
Upon successful payment, a digital EEL card and receipt will be issued.
The EEL card is a mandatory document that will be issued upon successful payment of the EEL. Like a passport, it will be required for the lawful entry and exit by an expatriate worker out of the country.
Conclusion
Following the implementation above, the companies are advised to proceed promptly with the Registrations, set up their profiles, and compile required documents and make payment for the EEL, where applicable, before the Deadline. Failure to comply may result in penalties of up to Three Million Naira (₦3,000,000) for each instance of non-compliance.
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