The Manufacturers Association of Nigeria (MAN) has called on the federal government to reconsider the implementation of the recently launched Expatriate Employment Levy.
It said the levy, if not reversed, might expose the federal government to a plethora of lawsuits that would distract it from the task of salvaging the current dire situation of our economy.
It said the unintended negative consequences on the manufacturing sector are humongous and cannot be accommodated at this time of evident downturn in our economy.
“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. The manufacturing sector is already beset with multidimensional challenges. In the year 2023, 335 manufacturing companies became distressed and 767 shut down,” it added.
The association pointed out that capacity utilisation in the sector has declined to 56 per cent amid rising interest rates and scarcity of forex needed to import raw materials and machinery, adding that inventory of unsold finished products has increased to N350 billion and the real growth has dropped to 2.4 per cent.
It further noted that the EEL contradicts the country’s international trade agreements and the obligations contained therein, pointing out that Nigeria is a signatory to the African Continental Free Trade Area agreement, which seeks to promote the free movement of skilled labour across the continent, which is complemented by non-discriminatory measures against fellow Africans.
MAN said the introduction of the levy could trigger retaliatory measures against Nigerians working across Africa and other nations of the world and may also frustrate regional integration efforts and portray Nigeria as a spoiler among her peers.
It said the imposition also has potential to impact the economy and exert pressure on our the national currency.
