By Stanley Onyeka, Lagos
The Nigeria Employers’ Consultative Association (NECA), yesterday, commended the Federal Government for suspending the implementation of the Expatriate Employment Levy (EEL).
The policy was recently introduced to impose taxes on foreign workers to encourage companies to hire qualified Nigerians.
It was however, suspended on Friday by the Minister of Interior, Dr Olubunmi Tunji-Ojo with a delegation led by the Minister of Industry, Trade and Investment, Mrs Doris Uzoka-Anite.
The Director-General, NECA, Adewale-Smatt Oyerinde, was quoted in a statement on Sunday, as saying: “We commend the Minister of Interior and Minister of Industry, Trade and Investment for their roles played in putting the EEL on hold.
“While we appreciate the objectives of the scheme and the need to address gaps in the management of expatriate employment in Nigeria, the decision by the government is nothing short of genuine concern for the plight of organised businesses.
“This has further affirmed this administration as a listening one; the speed of response to organised businesses’ concern was commendable and worthy of note.”
Also commending the suspension of the policy, the Centre for the Promotion of Private Enterprise (CPPE), said the “gesture is a demonstration of the fact the Tinubu administration is responsive, democratic and inclusive in its governance process.”
CPPE’s Chief Executive Officer, Muda Yusuf, in a statement on Sunday, added that “It shows that the administration is a listening government. Responsiveness to the concerns of stakeholders is a critical attribute of true democracy.”
The truth is that relevant institutions have over the years been considerably compromised. These are the gaps that needs to be addressed. We really do not need a new policy, regulation or handbook on the employment of expatriates.
More engagement, reflections
While NECA urged “an inclusive engagement with members of the OPSN, with the view of harvesting workable solutions and options for a win-win position for the economy and the private sector,” CPPE called for deeper reflections on the policy.
Mr. Yusuf said: “As we reflect on next steps, we wish to stress that there are already extant laws and regulations within the framework of the Nigeria Immigration Act and the Expatriate Quota Handbook that squarely addresses the outcomes contemplated in the EEL.”
He continued: “The handbook is robust and comprehensive and covers the critical issues of technology transfer, localization of jobs, and restrictions of some categories of expatriates from entry into the country, based on current skill gaps.
“There is also the National Content Act and the Presidential Executive orders three and five which focusses on localization of procurement and service opportunities.
“What needs to be done differently is to strengthen the institutional and regulatory effectiveness in the Ministry of Interior and the Immigration Service to ensure compliance and enforcement.
“The truth is that relevant institutions have over the years been considerably compromised. These are the gaps that needs to be addressed. We really do not need a new policy, regulation or handbook on the employment of expatriates.
“A new regulation or policy will be superfluous. The current regulations or handbook could be tweaked, if necessary.
“Evidence of regulatory weaknesses are the numerous instances of expatriates operating in the retail sector in the open markets, competing with our market women and men.
“We surely do not lack expertise in retail trading. But we have seen cases of some expatriates taking up shops in our traditional markets. Many of our indigenous traders in the markets have been displaced by these expatriates because they cannot compete with them.
“There are similar concerns expressed by our indigenous retailers in the computer and electronics, textiles and fabrics, and fashion accessories where expatriates are competing with them at the retail end of the market. Some of these companies dominate the entire value chain – they are the manufacturers, distributors and retailers.
“These are some of the issues that need to be addressed by the immigration service and the ministry of interior. Competition with our struggling market women and men is clearly an unfair competition.”
