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 Expatriates Taxation Regime should not be halted.
This ruling followed a motion ex-parte filed by the plaintiff’s counsel, Patrick Peter. Justice Ekwo ordered that the motion be served to the defendants within three days.
Details of the Taxation Regime
The contentious policy, known as the Expatriate Employment Levy (EEL), proposes the following:
• Directors: $15,000 annually (equivalent to ₦23 million at current exchange rates).
• Non-directors: $10,000 annually (equivalent to ₦16 million).The policy also includes penalties for non-compliance:
• Inaccurate reporting: Five years imprisonment and/or ₦1 million.
• Corporate failures, such as delayed filing, registration, or renewal: ₦3 million per offense.The Federal Ministry of Interior initially suspended the EEL in 2024 for further consultation with stakeholders, including the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).
Plaintiff’s Arguments
The plaintiff contends that the EEL is detrimental to Nigeria’s economy and violates constitutional provisions requiring legislative and executive collaboration for tax policies. The coordinator of the plaintiff group stated:
• The regime poses a “chokehold” on economic growth.
• Current tax policies for expatriates are far more favorable.
• Implementing the policy without legislative approval breaches Section 59 of the 1999 Constitution.Court’s Directive
Justice Ekwo ordered the defendants to justify the policy and explain why the court should not grant the plaintiff’s request to halt its implementation. The case is adjourned until January 16, 2025, for a hearing.
This development comes amid concerns over the economic implications of the EEL, with critics describing it as an “anti-people policy” that could stifle foreign investments and strain corporate operations in Nigeria.
