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A Federal High Court in Abuja has summoned Olubunmi Tunji-Ojo, Minister of Interior, and Lateef Fagbemi, Attorney-General of the Federation (AGF), over a legal challenge to the proposed expatriates employment levy (EEL) taxation regime.
Justice Inyang Ekwo issued the summons on Thursday after Patrick Peter, counsel for the plaintiff, moved a motion ex parte. The ministers are required to appear in court on January 16, 2024, to explain why the implementation of the expatriates taxation regime should not be halted.
The case, marked FHC/ABJ/CD/1780/2024, was filed by the Incorporated Trustees of New Kosol Welfare Initiative. The group is seeking an interim injunction to restrain the federal government from implementing the new EEL until the court rules on the motion.
Raphael Ezeh, the programme implementation coordinator for the group, disclosed in an affidavit that the EEL policy was announced by the federal government on February 27, 2024. He detailed the proposed levy as follows; Directors: $15,000 per annum (approximately ₦23 million at current exchange rates); Non-Directors: $10,000 per annum (approximately ₦16 million).
The policy also includes penalties for non-compliance, such as five years of imprisonment and/or a ₦1 million fine for inaccurate or incomplete reporting. Corporate entities face penalties of ₦3 million for late filing, false reporting, or failure to register employees or renew the EEL within 30 days of its expiry.
Ezeh described the policy as “anti-people” and argued that it would negatively impact Nigeria’s economy, adding that taxation must involve collaboration between the executive and legislative branches as required by the 1999 Constitution. He cited Section 59 of the constitution, which stipulates that the executive arm cannot unilaterally impose taxes.
He also warned that its implementation would favour expatriates over Nigerian workers.
The federal government had earlier suspended the policy to allow consultations with the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and other stakeholders.
The court adjourned the case to January 16, 2024, for the ministers to show cause as to why the implementation should not be restrained.
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