Nigeria has imposed a mandatory annual levy for organisations employing expatriate workers, requiring them to pay $15,000 (£12,000) for a director and $10,000 for other categories.
The move is aimed at encouraging foreign companies to hire more Nigerian workers.
Staff from diplomatic missions and government officials are exempt.
President Bola Tinubu has warned that the levy should not be used to discourage potential investors.
He made these comments while presenting the Expatriate Employment Levy (EEL) handbook on Tuesday, emphasizing that the government aims to increase revenue and promote indigenisation.
Tinubu stated that the objective is to create a balance in job opportunities between Nigerians and expatriates.
“The purpose is to close the wage gap between expatriates and the Nigerian workforce while increasing employment opportunities for qualified Nigerians in foreign companies within the country,” he mentioned.
He also expressed the importance of clear implementation to achieve the program’s objectives.
This decision comes at a time when Nigeria is facing its worst economic crisis in decades, leading to widespread suffering and discontent in recent months.
Labor unions and government workers organized protests on Tuesday to denounce the economic hardships.
Tinubu acknowledged the challenging period that Nigerians are going through and mentioned ongoing efforts to improve the country’s finances and stimulate economic growth.
The levy applies to employees who work at least 183 days a year.
The scheme includes fines of up to three years and imprisonment of up to five years for individuals or organizations that fail to comply, including providing inaccurate information.
The Nigerian Immigration Service will enforce the levy.
Local media quoted Interior Minister Olubunmi Tunji-Oj stating that it will operate under a public-private partnership model involving the government, immigration service, and a private company.
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