Justice Inyang Ekwo of the Federal High Court in Abuja has directed the Minister of Interior, Olubunmi Tunji-Ojo, and the Attorney-General of the Federation (AGF), Lateef Fagbemi, to explain why the implementation of the proposed Expatriate Employment Levy (EEL) should not be halted.
The ruling followed an ex-parte motion filed by a plaintiff represented by counsel Patrick Peter. Justice Ekwo ordered that the defendants be served with the motion within three days and adjourned the case to January 16, 2025, for the minister and the AGF to respond.
The contentious Expatriate Employment Levy (EEL), introduced in February 2024, mandates companies employing expatriates to pay:
$15,000 (N23 million) annually for directors.
$10,000 (N16 million) annually for non-director expatriates.
The policy also includes penalties for non-compliance, ranging from fines of N3 million to imprisonment for inaccurate reporting.
The plaintiff argued that the proposed taxation regime is unconstitutional, citing Section 59 of the 1999 Constitution, which requires collaboration between the executive and legislative branches for tax imposition.
The plaintiff claimed the policy’s implementation would harm Nigeria’s economic growth and sustainability, calling it “anti-people.”
The Federal Ministry of Interior had earlier suspended the policy to engage with stakeholders, including the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).
Justice Ekwo emphasized the need for due process and ordered the defendants to justify the policy before further actions are taken.
The case will be revisited on January 16, when the defendants are expected to present their defense.
The ruling highlights ongoing concerns about balancing revenue generation with economic stability in Nigeria.