Expatriate Employment Levy Handbook 2024
ALN Nigeria | Aluko & Oyebode
Aluko & Oyebode is a top-tier Nigerian law firm, providing world-class legal services to local and international clients
The Federal Ministry of Interior (“FMoI”) has released a Handbook on Expatriate Employment Levy (EEL) 2024 (the “Handbook”), the Handbook introduces a mandatory levy imposed on employers of expatriate employees in Nigeria (the “Levy”). We have provided below the key highlights of the Handbook.
1. The obligation to pay the Levy is on all employers of expatriates, who are employed in Nigeria for a total period of 183 days or more within a fiscal year. Employers are permitted to replace without extra charge expatriate employees who leave within the fiscal year while the Levy is still valid.
2. Staff of diplomatic missions, government officials, dependants of the expatriate employees and international agencies accredited by the Nigerian Immigration Service are exempted from the payment of the Levy.
3. The applicable Levy payable annually is US$15,000 (Fifteen Thousand United States Dollars) for directors and US$10,000 (Ten Thousand United States Dollars) for other categories of expatriates, who are resident in Nigeria for a period of 183 days or more.
4. Employers are required to maintain accurate records of all their expatriate employees. These records include the employment contracts, salary details, work permits and all relevant documentation regarding the employment. Employers must file, within stipulated timelines, reports of the details of the employment and provide updates as they may relate to any change in the employment circumstance. We note that employers are currently required to file the expatriate quota returns monthly at the Nigerian Immigration Service (NIS) detailing the status of each expatriate quota position.
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5. The Nigerian Immigration Service (NIS) is responsible for enforcing the Levy. Infractions including failure to pay the Levy, failure to register the expatriate employee within 30 days, providing false information and failure to renew annual payment of Levy before its expiration date will each attract a fine of N3,000,000 (Three Million Naira).
For more information on how we can assist you with advice on the Handbook please contact Immigration@aluko-oyebode.com.
📝 Oghogho Makinde , Partner | Cephas Caleb , Partner | Zainab Akintola , Associate | Favour Agbonyehemen, Associate.
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9moSuccinct read. However, seeing as employers of expatriates in Nigeria are already required to file expatriate quota returns (which contains employment details of expatriates), isn’t it duplicative to require expatriates employers to file an additional returns of expatriates employment details with the same NIS. Shouldn’t the expatriate quota return forms be expanded instead for ease of record keeping. Also, it is not clear whether the EEL is a one-off payment or an annual levy.
Thanks for sharing