The Federal High Court in Abuja has summoned the Minister of Interior, Dr. Olubunmi Tunji-Ojo, and the Attorney-General of the Federation, Mr. Lateef Fagbemi (SAN), to justify the Federal Government’s proposed expatriate taxation regime, known as the Expatriate Employment Levy.
The summons was issued by Justice Inyang Ekwo in response to a motion ex parte filed by the Incorporated Trustees of the New Kosol Welfare Initiative.
The court ordered that the defendants be served with the motion within three days and explain why the implementation of the EEL should not be stopped.
The EEL, unveiled by the Federal Government on February 27, 2024, imposes taxes on companies and organisations engaging expatriates or foreign experts.
Under the proposed regime, companies would pay $15,000 (equivalent to N23m) annually for expatriates at the director level and $10,000 (equivalent to N16m) annually for those below director level.
Represented by counsel Patrick Peter, the plaintiff sought an interim injunction to halt the EEL’s implementation, arguing that it is an “anti-people policy” with severe implications for Nigeria’s economy.
“If the defendants are not restrained by an order of this honourable court, they will commence full implementation of the said programme, thereby threatening the nation’s economic sustainability,” Peter warned.