By Correspondent in Abuja.
The Federal High Court in Abuja has fixed December 1 for hearing in a suit seeking to restrain the Federal Government from implementing its proposed Expatriate Employment Levy (EEL) policy.
Justice Mohammed Umar fixed the date after the case, which was earlier before Justice Inyang Ekwo, was reassigned to him. The matter could not proceed on Thursday due to the ongoing judges’ conference.
Although Paul Atayi, counsel for the plaintiff, and the defence team were in court, the new judge was absent. Consequently, the case will now begin de novo (afresh) before Justice Umar.
The suit, filed by the Incorporated Trustees of New Kosol Welfare Initiative, is marked FHC/ABJ/CS/1780/2024 and names the Minister of Interior, Mr. Olubunmi Tunji-Ojo, and the Attorney-General of the Federation (AGF), Mr. Lateef Fagbemi, SAN, as first and second defendants respectively.
The plaintiff, represented by a team of lawyers led by Atayi, is seeking an interim injunction restraining the defendants from implementing the proposed expatriate tax policy pending the determination of the substantive motion.
In an affidavit deposed to by the group’s Programme Implementation Coordinator, Raphael Ezeh, the plaintiff stated that the Federal Government had on February 27, 2024, unveiled the proposed Expatriate Employment Levy (EEL).
According to Ezeh, the policy would compel companies employing expatriates to pay:
$15,000 (₦23 million) annually for each expatriate at director level, and
$10,000 (₦16 million) annually for each expatriate at non-director level.
He further averred that the government proposed stringent penalties for non-compliance, including five years’ imprisonment or a ₦1 million fine for inaccurate reporting, and ₦3 million fines for failure to file, register, or renew the EEL within stipulated periods.
Ezeh described the policy as “anti-people and economically stifling,” arguing that taxation matters require collaboration between the executive and legislative arms of government as provided under Section 59 of the 1999 Constitution (as amended).
He contended that the executive arm lacks the constitutional power to unilaterally impose new taxes without legislative backing.
However, the Minister of Interior and the AGF, in their separate preliminary objections, urged the court to dismiss the suit for want of jurisdiction and lack of locus standi (legal standing) on the part of the plaintiff.
In his objection filed on March 14, the Interior Minister, through Mrs. Eva Omotese, Director of Legal Services, argued that the plaintiff had failed to show sufficient interest in the matter. Similarly, the AGF, through Mrs. Maimuna Shiru, Director of Civil Litigation and Public Law, contended that the suit disclosed no reasonable cause of action.
In a reply on points of law, Atayi maintained that the court was properly vested with jurisdiction, citing the Saraki v. Federal Republic of Nigeria (2016) case, and argued that the plaintiff, being a public interest group, has the legal right to challenge policies perceived to harm the public.
He urged the court to dismiss the defendants’ objections and allow the substantive matter to proceed.
The Federal Government had earlier suspended the implementation of the Expatriate Employment Levy shortly after its launch in February, citing the need for further consultations with key stakeholders, including the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).
Edited by Dada Ahmed.
