Tunji-Ojo, AGF Fagbemi ‘to appear in Court’ over proposed expatriates’ tax regime

A Federal High Court in Abuja has summoned the Minister of Interior, Dr. Olubunmi Tunji-Ojo, and the Attorney-General of the Federation (AGF), Mr. Lateef Fagbemi, SAN, to appear before it within three days regarding the proposed expatriates’ tax regime.

The court ordered the duo to show cause as to why the implementation of the Expatriate Employment Levy (EEL) should not be halted, following an ex-parte motion filed by the plaintiff, Incorporated Trustees of New Kosol Welfare Initiative.

Justice Inyang Ekwo issued the directive after hearing from counsel for the plaintiff, Patrick Peter. The Minister and AGF are required to be served with the motion within three days of the order.

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The plaintiff, represented by Paul Atayi, seeks an interim injunction to prevent the implementation of the new taxation regime, which includes the controversial EEL, pending the resolution of the case.

In an affidavit deposed by Raphael Ezeh, the Programme Implementation Coordinator of the plaintiff, it was revealed that the Federal Government unveiled the EEL policy on February 27, 2024. The tax proposes to impose $15,000 (₦23 million) annually on expatriates at the director level, and $10,000 (₦16 million) annually on non-director expatriates.

Ezeh also expressed concerns about the additional penalties associated with non-compliance, which include imprisonment and hefty fines. He warned that the proposed tax regime could have detrimental effects on Nigeria’s economic growth.

The plaintiff contends that the taxation policy is unconstitutional, as the executive alone does not have the authority to impose taxes without legislative approval, under the 1999 Constitution (as amended).

Ezeh further alleged that the Minister plans to fully implement the EEL unless restrained by the court, potentially jeopardizing Nigeria’s economic stability.

Justice Ekwo adjourned the matter until January 16, 2025, for the Minister and AGF to appear and explain why the plaintiff’s request for an injunction should not be granted.

Earlier in 2024, the Federal Ministry of Interior had suspended the implementation of the EEL to allow further consultations with key stakeholders, including the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA).

NIGERIAN TRIBUNE