A Federal High Court in Abuja has summoned the Minister of Interior, Olubunmi Tunji-Ojo, and the Attorney-General of the Federation, Lateef Fagbemi, regarding the Expatriates Employment Levy (EEL). Both officials are required to appear in court on January 16 to explain why the introduction of the new expatriate tax system should not be halted. Justice Inyang Ekwo made this ruling on Thursday after a motion was filed by plaintiff’s counsel, Patrick Peter. The judge ordered that the minister and AGF be served with the motion within three days. The lawsuit, identified as FHC/ABJ/CD/22024/2024, was brought by the Incorporated Trustees of New Kosol Welfare Initiative, which is seeking a temporary injunction to prevent the implementation of the new tax regime until the motion is considered. The group’s Programme Implementation Coordinator, Raphael Ezeh, noted that the EEL policy was announced by the government on February 27, 2024. Ezeh explained that according to KPMG and other analysts, the government aims to require companies employing expatriates to pay $15,000 per year for director-level expatriates and $10,163 for non-director expatriates. Ezeh also mentioned proposed penalties for non-compliance, including imprisonment and fines for inaccurate reporting. He argued that the new tax system would significantly harm Nigeria’s economy and highlighted the need for collaboration between the executive and legislative branches on taxation issues, emphasizing that the executive alone cannot impose taxes under the 1999 Constitution. The case has been adjourned to January 16 for the defendants to present their defense. The Federal Ministry of Interior had previously suspended the EEL implementation in 2024 for further discussions with the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and other stakeholders.
