ǼLEX Clarifies Newly Introduced Expatriate Employment Levy

ǼLEX Clarifies Newly Introduced Expatriate Employment Levy, EEL

ǼLEX Clarifies Newly Introduced Expatriate Employment Levy

OpenLife Nigeria reports that ǼLEX, a law firm, known for its global legal expertise to offer quality services to its clients, has clarified the newly introduced Expatriate Employment Levy, EEL.

In a document made available to OpenLife Thursday afternoon, the law firm disclosed that the levy, which was introduced on Tuesday, February 27 by the federal government, is mandatory for employers in Nigeria who hire foreign workers.

The clarifications are reproduced below unedited


On 27th February 2024, the Federal Government of Nigeria introduced the Expatriate Employment Levy (“EEL”), a mandatory contribution levied on employers who hire foreign workers in Nigeria.

The EEL serves several objectives as follows:

1. Encouraging the transfer of knowledge and skills from expatriates to local employees through training and mentorship programs, strengthening the domestic workforce.

2. Balancing the attraction of Foreign Direct Investments and protecting the rights and opportunities of local workers, ensuring both economic development and social welfare.

3. Fostering collaboration between government entities, industry associations, and businesses, facilitating continuous dialogue to address sectoral needs and achieve national goals.

4. By responding to demographic changes like aging populations and skilled labour shortages, the EEL encourages businesses to prioritize local talent acquisition and invest in workforce development for long-term economic prosperity.

Eligibility and Applicability Requirements

Private sector employers are liable to pay the EEL for expatriate workers employed in Nigeria for at least 183 days annually.

Accredited staff of diplomatic missions, government officials and international agencies as well as their dependents are exempted from payment of the EEL.

However, this exemption does not apply to dependents engaged in any employment in Nigeria.

EEL Rates

Employers are required to pay $15,000 for directors and $10,000 for other categories of expatriates. The EEL is to be paid annually.

Sanctions for non-compliance

Employers failing to comply with reporting and payment requirements are subject to penalties of up to N3,000,000.


The introduction of the Expatriate Employment Levy marks a significant step by the Nigerian government towards fostering economic growth while ensuring the welfare of local workers.

By incentivizing knowledge transfer, supporting local talent, and promoting collaboration, the EEL sets a foundation for sustainable development and prosperity. Businesses are encouraged to adhere to the provisions of the EEL Handbook.

ǼLEX Clarified Newly Introduced Expatriate Employment Levy, EEL
President of Nigeria, Bola Ahmed Tinubu

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