The Nigerian government has now set its eyes on expatriates. This is evidenced by the government’s recently introduced Expatriate Employment Levy to address various economic challenges and promote local employment for its citizens. This levy requires companies to pay a fee for every expatriate they employ.
This move has sparked debates, as it impacts revenue generation, foreign exchange, FOREX management, currency stability, job preservation for Nigerians, reverse migration of Nigerians in the diaspora, the principle of reciprocity, and employment opportunities.
The advent of Expatriate Employment Levy presents opportunity for revenue generation for the government. By imposing fees on companies employing expatriates, the government can generate additional funds to invest in infrastructure, social services, and other developmental projects. Reducing the influx of expatriates through financial disincentives could potentially ease the demand for foreign currency as these expatriates require payments in other currencies other than the naira.
This, in turn, could contribute to stabilizing the Nigerian naira by reducing pressure on the FOREX market because even when paid officially in naira, they end up purchasing and exporting foreign currencies.
The levy encourages companies to prioritize local talent over expatriates, leading to increased job opportunities for Nigerians. By reducing reliance on foreign expertise, more Nigerians can gain training and employment, and therefore contribute to the growth of the economy. Mandating the Expatriate Employment Levy might incentivize skilled Nigerians abroad to return home to seek employment opportunities.
This reverse migration could bring back valuable skills, experiences, and investments, bolstering the domestic workforce and economy. Implementing a levy on expatriate employment aligns with the principle of reciprocity. Many countries around the world impose similar levies or restrictions on foreign workers.
Nigeria’s move ensures a fair playing field and encourages other nations to reciprocate, thereby protecting the interests of Nigerian workers abroad. The act of reducing the influx of expatriates creates opportunities for local talent to fill vacant positions. This not only empowers young Nigerian innovators but also fosters skill development, innovation, and entrepreneurship within the country.
