The Manufacturers Association of Nigeria, MAN, has said that the introduction of the Expatriate Employment Levy by President Bola Ahmed Tinubu may further cause more companies to fold up in Nigeria, saying that 335 companies became distressed while 767 companies shut down in 2023, and so wonders what will happen in this year.
They urged the President to look into reversal of the such policy.
MAN made the call in a Statement they made on Wednesday averring,“The manufacturing sector is already beset with multidimensional challenges. In 2023, 335 manufacturing companies became distressed and 767 shut down.”
They decried that the expatriate levy introduced by Mr Tinubu would further increase cost of doing business, adding that the “Levy could have far-reaching implications for the Nigerian economy and potentially exert pressure on national currency.”
“The imposition of EEL poses a potential impact on the manufacturing sector and the economy at large. This will in turn mark an unwarranted and unprecedented addition to the cost of doing business in Nigeria, especially to manufacturers.
” If not reversed, it might expose the Federal Government to a plethora of lawsuits that would distract the government from the task of salvaging the current dire situation of our economy.”
It would recalled that on February 27, 2024, the federal government launched the Expatriates Employment Levy (EEL) Handbook. The levy is a government-mandated contribution imposed on employers who employ expatriate workers in Nigeria.
The effective date of implementation of the EEL has been defined as March 15, 2024, and employers have until April 15, 2024, to comply.
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