The Lagos Chamber of Commerce and Industry (LCCI), has said that the Expatriate Employment Levy (EEL) imposed by the Federal Government may cause unintended consequences that may trigger the relocation of foreign companies to neighbouring countries.
According to LCCI the levy might present Nigeria as an unconducive business environment before foreign investors hence they would relocate to less expensive environment for business.
In a statement signed by Chinyere Almona, the director-general of LCCI, the Chamber said it is concerned about the likely perception by foreign investors that the Nigerian government is not accommodating to foreign workers.
The chamber expressed concern that this perception would be harmful to our drive for Foreign Direct Investments inflows.
The statement read in part, “The Expatriate Employment Levy may cause unintended consequences that may trigger the relocation of foreign companies to neighbouring countries that present a more conducive and less expensive environment for business.
“The imposition of this levy may likely spark retaliatory actions taken by other countries by imposing levies on foreigners and particularly targeting Nigerian workers. This will in turn affect diaspora remittances from Nigerian workers resident in other countries.”
In the same vein, the Centre for the Promotion of Private Enterprise (CPE), in a statement signed by Muda Yusuf, its chief executive officer, criticised the new policy directive.
The Centre said that the policy could be a major setback for the continental economic integration vision.
The statement read, “There are serious implications for diaspora Nigerians. The policy may trigger reciprocal actions from other countries and this may affect Nigerians in the diaspora.
“There are currently over 17 million Nigerians in various countries around the world doing extremely well in the fields of education, medicine, health, sports, media & entertainment, leadership & politics, finance, science & ICT, transportation, tourism, industry and agribusiness.”
This penny wise pounds foolish decision only time can tell where it would lead us to
I am aware of foreign companies who are scheduled to leave Nigeria soon even before this imposed levy. This policy of imposed levy would be the final push others need to join in the move.
Why are we like this? Are these people not coming here to make profits. Don’t Nigerians pay a similar levies in other countries? We just sell ourselves cheap because we want to attract investors?