Implementation Of The Expatriate Employment Levy Introduced By The Nigerian Government

Introduction

Sequel to our update regarding 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 released the implementation guidelines for the enforcement of the EEL.

The Expatriate Employment Levy (EEL) is a government-mandated contribution imposed on employers hiring expatriate workers in Nigeria. It was introduced by the Nigerian Government on February 27, 2024.

This summary contains information on the implementation and application of the EEL to relevant stakeholders.

Need-to-know Information!

1. Implementation Date: the FMI, through a Public Notice dated February 29, 2024, officially announced that the implementation of the EEL is scheduled to begin on March 15, 2024 (the "Effective Date") until April 15, 2024 (the "Deadline").
2. Scope Of Application: for purposes of implementation, expatriates are categorized into Directors, Non-Directors, and Non-Working Dependents. Employers are mandated to register expatriate employees and their dependents where applicable.
3. Registration: employers can commence registration via the EEL website https://eel.interior.gov.ng/auth or the EEL mobile application (the "digital platforms"). The registration process involves setting up the company profile, allocating quotas, registering expatriates/dependents, and verifying employee KYC information. Detailed instructions are provided in the User Manual accessible on the digital platforms.
4. 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.
5. The EEL Card: is a mandatory document, issued upon successful payment of the EEL. Like a passport, it will be required for the lawful entry and exit of expatriate workers from the country.

Conclusion

In view of the above implementation procedure, companies are advised to proceed promptly with the registrations, profile setup, compilation of the necessary documents and payment of the EEL 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.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.