ABUJA (Sundiata Post) – The Borehole Drillers’ Association of Nigeria (BODAN), has urged the Nigerian Government to reconsider its decision on the Expatriate Employment Levy (EEL), as it poses a threat to the survival of the drilling sector.
BODAN President, Mr Francis Uzoma, on Monday state that the decision has prompted many foreign drilling companies to consider relocating to other countries.
Recalls that Expatriate Employment Levy mandates an annual fee for organisations employing expatriate workers, requiring $15,000 (£12,000) for a director and $10,000 for other employees.
This move, according to the Federal Government aims to encourage foreign companies to increase the employment of Nigerian workers.
Uzoma said the federal government should reconsider the decision by reviewing the mandated levy to be more considerate in line with current economic realities.
According to him, its members, especially the foreign investors have been worried about the new decision saying it was not beneficial to continue to operate in the country.
“I just came out from a meeting with my members and they have expressed concern about the new law which mandates organisations employing expatriate workers to pay $15,000 for a director and $10,000 for other employees.
“These companies have already indicated their intentions to leave the country, many of them are Indian and Asian drillers.
“There are predictions of massive job losses, affecting mainly Nigerian workers and would contribute to unemployment.
“We are calling for total review of this annual levy as the one-month window given for payment is not tenable and would affect the economy.
“Without such reconsideration, there’s a risk of drilling companies relocating to neighboring countries, as they have expressed dissatisfaction and unfavorable business conditions”.
These effects, he added include potential repercussions on the borehole sector, hindrance to knowledge transfer, and limitations on equipment and technology use.
He stressed the potential retaliation from foreign investors, particularly Nigerians in diaspora, highlighting the importance of considering the policy’s impact.
He mentioned his intention to write to the Minister of Water Resources and Sanitation, outlining the adverse effects of the policy on the economy.
Recalls President Bola Tinubu’s cautionary statement during the recent launch of the EEL handbook, where he warned against using the levy to obstruct potential investors.
He highlighted the government’s expectations to enhance revenue and promote indigenisation, emphasising the objective of balancing employment opportunities between Nigerians and expatriates.
Tinubu clarified that the government’s aim is to narrow wage gaps between expatriates and the Nigerian labor force.
Also, it is to simultaneously foster increased employment opportunities for qualified Nigerians within foreign companies operating in the country. (NAN)
