March 5 Set As D-Day For Heated Court Battle Over Expatriates Tax Policy

The Federal High Court in Abuja has adjourned the hearing of a suit challenging the implementation of the proposed Expatriates’ Employment Levy (EEL) to March 5. The adjournment was granted on Thursday after the Minister of the Interior’s counsel, John Otuka, requested time to correct errors in the counter-affidavit filed in response to the plaintiff’s motion for an injunction…READ MORE…

Justice Inyang Ekwo approved the request and instructed the defendants to file all required documents at least seven days before the next hearing.

The lawsuit, filed by the Incorporated Trustees of New Kosol Welfare Initiative, seeks to restrain the Minister of the Interior, Dr. Olubunmi Tunji-Ojo, and the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), from enforcing the Expatriates’ Employment Levy.

Represented by counsel Paul Atayi, the plaintiff argued that the levy would harm Nigeria’s economic stability and described it as “anti-people.” The levy, introduced on February 27, 2024, requires companies employing expatriates to pay annual taxes: $15,000 (N23 million) for directors and $10,000 (N16 million) for non-directors.

In the suit, the plaintiff’s Programme Implementation Coordinator, Raphael Ezeh, asserted that taxation matters must involve both the executive and legislative arms of government, as outlined in Section 59 of the 1999 Constitution (as amended).

During Thursday’s hearing, Atayi was prepared to proceed with the plaintiff’s motion for an injunction. However, Otuka admitted to filing a response to a “non-existent originating summons” due to an error and requested an adjournment to make corrections.

Enoch Simon, representing the Attorney-General of the Federation, confirmed receipt of the plaintiff’s documents and stated that a conditional memorandum of appearance, counter-affidavit, and defence statement had been filed, with plans to submit a preliminary objection within the allowed timeframe.

Justice Ekwo assured the parties that the status quo would be maintained to prevent tampering with the subject matter. He emphasized that all applications ready for hearing would be addressed during the March 5 sitting.

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