News
Court summons interior minister, AGF over planned expatriate tax policy
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 Court of Appeal in Abuja has ordered a fresh hearing in the legal battle over the disputed Kano Emirate involving Alhaji Nasir Ado Bayero.
The Appellate Court, in a judgment delivered on Friday, held that Bayero was denied fair hearing due to the shoddy manner in which a Kano High Court conducted proceedings against him.
Justice Mohammed Mustapha, who delivered the lead judgement, stated that the Kano High Court was unfair to Bayero by conducting proceedings without serving him a hearing notice to enable him to present his case.
Justice Mustapha held that all courts of law are bound to ensure justice for all parties by giving them equal opportunities, adding that the conduct of the proceedings against Bayero amounted to a travesty of justice.
Specifically, the Appellate Court held that Bayero ought to have been served with a hearing notice to allow him to present his grievances before judgment was delivered against him in what it described as a shoddy arrangement.
The Court of Appeal, therefore, ordered that the case be remitted to the Chief Judge of the Kano State High Court to be reassigned to another judge for expeditious determination.
Justice Mustapha did not award costs against the respondents in the appeal filed by Ahaji Ado Bayero.
Details later.
By Kayode Sanni-Arewa
The Apex Igbo socio-cultural group, Ohanaeze N’digbo Worldwide has elected Dim Uche Nnamdi Okwukwu as its new factional President General.
The election, which took place at a convention in Port Harcourt on Thursday night, saw Okwukwu, a legal practitioner and former Secretary General of the group, chosen unopposed.
Okwukwu, from Elele in Rivers State, expressed his gratitude to the delegates and outlined his commitment to addressing the issues facing the Igbo people.
He stated that uniting the fractured Igbo community would be his priority.
His plans include engaging with the government and key stakeholders to seek the release of Nnamdi Kanu and other political prisoners, as well as pushing for economic and infrastructural development in Igbo areas.
Additionally, he intends to address security concerns, including kidnapping and other forms of violence, and work toward restructuring efforts that involve all ethnic groups.
More to come…
By Kayode Sanni-Arewa
The recent defection of lawmakers from the Labour Party to the All Progressives Congress (APC)he member representing Ikwuano/Umuahia North/ Umuahia South Federal Constituency of Abia State in the House of Representatives, Hon. Obi Aguocha has declared that as it stands Julius Abure is the National Chairman of the Labour Party (LP
Obi, an ally to Governor Alex Otti of Abia State, stated this while speaking on the recent defection of lawmakers from the Labour Party to the All Progressives Congress (APC).
According to the lawmaker, there is no leadership crisis rocking the Labour Party that warrants the defection of the party’s lawmakers.
In an interview with the New Telegraph, Aguocha noted that there is no political party that doesn’t have crisis but the leadership has remained steadfast in finding solutions.
Speaking on the defection, he said: “We have a governor but some people are only fixated on the five decampees.
“They’re my colleagues, and I would not say ill of my colleagues because it was a personal decision they took.
“Some of them have explained their actions in the public domain, and part of what they said was that there is a perceived division in the Labour Party.
There’s no political party, especially the top three in Nigeria, that doesn’t have any issues. APC has their problems. PDP has their problems. The Labour Party, of course, has its problems.
“But the most important thing is that the leadership of Labour Party has remained steadfast in finding solutions to the problems that we have in the Labour Party.
“Yes, our matter has gone through the High Court and is on appeal. I would believe that by the time the court decides as to the direction of the party, then all of us will now know the direction to move.
“But by way of the determination of the court, Julius Abure by determination of the court, whether right or wrong, is the chairman of the party. So, there’s no division in the Labour Party.”
2027 election
Obi Aguocha pointed out that most of these lawmakers who defected come from states that do not have a Labour Party government, so, it’s also an issue of their self-survival.
“They probably maybe under pressure that the election for 2027 is going to be very difficult for them without a helping hand from the state government,” he said.
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