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Court summons interior minister, AGF over planned expatriate tax policy
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A Federal High Court has issued a three-day summons for Olubunmi Tunji-Ojo, the Minister of Interior, and Lateef Fagbemi, SAN, the Attorney-General of the Federation (AGF).
The summons relates to the proposed implementation of a controversial tax policy aimed at expatriates.
Justice Inyang Ekwo, ruling on an ex-parte motion filed by the plaintiff’s counsel, Patrick Peter, directed the Minister of Interior and the Attorney-General of the Federation to justify why the policy should not be halted. The court further ordered that the motion be served on both officials within three days.
The Incorporated Trustees of New Kosol Welfare Initiative filed a motion ex-parte, marked FHC/ABJ/CD/1780/2024, against the Minister of Interior and the Attorney-General of the Federation as the first and second defendants.
The application was submitted by a legal team led by Paul Atayi, seeking an interim injunction to restrain the defendants from implementing the Expatriate Employment Levy (EEL), a new taxation regime targeting expatriates in Nigeria, pending the determination of the motion on notice.
In an affidavit sworn by Raphael Ezeh, the group’s Programme Implementation Coordinator, it was disclosed that on February 27, 2024, the Federal Government announced the EEL policy.
According to reports cited by Ezeh from KPMG and other information sources, the policy mandates companies employing expatriates to pay annual levies, including $15,000 (equivalent to ₦23 million) for each expatriate at the director level and $10,000 (equivalent to ₦16 million) for each expatriate at non-director levels.
The affidavit further stated that the policy includes penalties for non-compliance, such as five years’ imprisonment and/or a fine of ₦1 million for inaccurate or incomplete reporting. Corporate entities failing to file the EEL or register expatriate employees within 30 days face fines of ₦3 million, while providing false information also attracts a fine of ₦3 million.
The plaintiff contends that the policy imposes undue burdens and has requested the court’s intervention to suspend its implementation.
The coordinator stated that any organization failing to renew the Expatriate Employment Levy (EEL) before its expiration would face a penalty of ₦3 million.
Ezeh described the proposed taxation regime as an anti-people policy, arguing that it would have a detrimental impact on various sectors of the Nigerian economy and act as a barrier to the nation’s economic growth.
He emphasized that taxation is a sensitive issue, requiring collaboration between the executive and legislative arms of government as stipulated in the 1999 Constitution (as amended). He referred to Section 59 of the constitution, which specifies that the executive arm alone cannot impose taxes on corporate entities or other citizens.
Ezeh further noted that the existing tax framework is far more favorable to expatriates compared to the proposed regime.
Ezeh alleged that the minister is about to commence full implementation of the EEL.
“If the defendants are not restrained by an order of this honourable court, they will commence full implementation of the said programme and thereby threatening the nation’s economic sustainability,” he said.
He said the plaintiff undertook to pay damages if the substantive suit turned out to be frivolous.
After listening to Peter, Justice Ekwo ordered the plaintiff to put the defendants on notice of the ex-parte application within 3 days of the order.
He said: “Upon being served, the defendants are hereby ordered to show cause why the prayers of the plaintiff ought not to be granted on the next date of hearing.”
The judge adjourned the matter until Jan. 16 for the minister and the AGF to show cause.
The Federal Ministry of Interior had earlier in 2024 postponed the implementation of the Expatriate Employment Levy (EEL), initially launched on February 27, 2024, to allow for further consultations with the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and other key stakeholders.
The Friends of Hiliary (FOH), has urged constituents in Delta North to put behind them the recent court ruling that struck out Senator Ned Nwoko’s suit challenging the victory of Senator Ifeanyi Okowa in the All Progressives Congress (APC) senatorial primary, saying the district has more pressing issues demanding attention.
The group said the Federal High Court’s decision, which reportedly described the suit as incompetent, should bring an end to the legal dispute and allow political actors and the electorate to focus on the task of rebuilding Delta North.
In a statement issued on Tuesday, FOH maintained that the people of the district stand to gain more by concentrating on development and effective representation rather than prolonged political contests.
According to the group, Delta North has lost valuable time over the past three years and now requires a united effort to recover missed opportunities and reposition the senatorial district for sustainable progress.
“The issues confronting our people are far too serious for us to continue dwelling on a suit that has already been struck out by the court,” the statement said.
FOH urged constituents to look beyond partisan disagreements and embrace what it described as the bigger picture of restoring quality representation, attracting development projects and ensuring that the interests of Delta North occupy the front burner of national discourse.
The group also called on political stakeholders across party lines to avoid actions capable of deepening divisions within the district, insisting that the welfare of the people should take precedence over personal political ambitions.
It said the court’s ruling should serve as an opportunity to close the chapter on the primary election dispute and redirect energy toward initiatives that would improve the lives of the people.
FOH reaffirmed its support for Senator Okowa, expressing confidence in his capacity to provide purposeful leadership and work with all stakeholders to advance the interests of Delta North.
The Board of Trustees (BoT) of the Peoples Democratic Party has reiterated that the party has moved past the period of uncertainty over persistent litigation, adding that the party is now rebuilding and will come out stronger and better.
The BoT Chairman, Senator Mao Ohuabunwa, in a statement on Tuesday, said the last week Friday’s judgment of the Federal High Court should be enough for those who are yet to accept the reality of a new PDP to beat a retreat.
Senator Ohuabunwa, while hailing the Federal High Court judgment, said it was in line with earlier judgement of the Supreme Court.
He said, as the conscience and the moral compass of the party, the BOT fully respects and accepts the Federal High Court judgment and will continue to respect the rule of law.
The PDP BoT Chairman described any other person parading himself as the Chairman of the PDP BoT as criminal impersonator that will be made to face the full wrath of the law soon.
Senator Ohuabunwa urged party leaders to embrace reconciliation and collective responsibility, stressing that the PDP must remain focused on strengthening its internal structures so as to emerge victorious in the 2027 general elections.
He assured that necessary steps will be taken to further strengthen the Party’s unity, stability, and preparedness for upcoming electoral engagements.
Former National Chairman of the All Progressives Congress, APC, Abdullahi Ganduje, has declared that sitting with bandits to negotiate is not a good strategy.
He cautioned that negotiating with bandits would further enrich the terrorists, thereby worsening insecurity in the country.
He made the remark at a press conference on Tuesday in response to claims by the vice-presidential candidate of the Nigeria Democratic Congress, NDC, Rabiu Kwankwaso, that he and the party’s presidential candidate, Peter Obi, would hold talks with terrorists if elected into office in 2027.
According to Ganduje:, the role of the security agencies depends on the strategies that have been adopted. The Air Force helps to do its own due diligence, alongside the Army, Navy, the police, and the DSS. So, the issue of sitting with bandits to negotiate with them personally, I don’t appreciate that.
“Because, in Nigeria, having a gun without approval is illegal. How do you expect hundreds of bandits to come from the forests with their guns to sit down with local chiefs, chairmen of local governments, traditional rulers, or even the police and start negotiating? I think that system has failed, and it will continue to fail.
“This is because we are giving room to the bandits; we are arming them because the negotiation is that they should be allowed to operate here and there, they should be given money, transportation, motorcycles, and money for logistics. So, in a way, we are giving them an enabling environment to operate.
“And by so doing, they would enrich themselves through kidnapping, as that would give them more financial power to purchase weapons, which would be used against us to cause panic and then call them for negotiation. I don’t think that is a good strategy.”
Friends of Hilary urges Delta North to move beyond Nwoko’s failed suit
PDP Rebuilding, Will Come Out Stronger, BoT Assures Party Supporters
Ganduje to Kwankwaso: Negotiating with bandits’ll enrich them, not good strategy
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