The Nigeria Employers’ Consultative Association (NECA) has raised concerns over the Ministry of Interior’s expatriate employment levy, warning that it could deter investment in the country. In a statement released on Sunday, NECA criticized the levy, stating that certain regulations should be in place before such a tax is imposed.
NECA Director-General, Adewale-Smatt Oyerinde, expressed that the new levy, ranging from $10,000 to $15,000 on employers who hire expatriates, could have negative consequences on the economy. Oyerinde emphasized that the levy could discourage Foreign Direct Investment and lead to increased unemployment.
The association highlighted the importance of developing the local workforce but argued that the Ministry of Interior’s initiative could create economic distortions. Oyerinde questioned the legality of the levy, stating that it must be backed by appropriate legislation.
NECA urged the government to focus on strengthening existing regulatory institutions for expatriate employment management instead of imposing additional levies. Oyerinde emphasized the need for fiscal incentives to attract investment and support business stability.
In conclusion, Oyerinde called for collaboration between the government and the private sector to explore alternative revenue streams and promote wealth creation. He stressed the importance of finding fair solutions that promote economic interests and sustainable business growth without burdening businesses excessively.
