New regulations will be implemented by the Federal Government of Nigeria for the acquisition of business permits, visas, expatriate quotas, and Combined Expatriate Residence Permits and Aliens Cards (CERPAC). During a stakeholder meeting with prominent business associations such as NECA, MAN, and NACCIMA, Interior Minister Olubunmi Tunji-Ojo revealed this. Utilising automation and technology, the reforms seek to combat corruption, eradicate inefficiencies, and streamline these procedures. Concerned about the present three-month wait time for foreign nationals to receive CERPAC, Tunji-Ojo called it a National Security danger.
The administration is dedicated to increasing efficiency through digitisation, he underlined. Additionally, initiatives to reconcile Economic Expansion and Investment with national objectives are being developed by the ministry. Following the meeting, a committee consisting of representatives from the Ministry of Interior, NECA, and the Private Sector will be established within a week to further develop the talks. The proposed reforms will then be made public. In creating an atmosphere that is conducive to business, the minister emphasised the value of public-private partnerships. While some issues still exist, he also pointed out advancements in passport issuing, such as the launch of contactless applications.
Inefficiencies in processing permits & quotas have been a major problem.
Adewale Smatt-Oyerinde, the Director-General of NECA, said the committee will handle issues pertaining to expatriate quotas, pre-checking, and pre-evaluation. Important representatives from the Nigeria Immigration Service, Security services, and business sector organisations attended the meeting. Inefficiencies in processing permits and quotas have been a major problem for Nigeria’s expatriate employment system, with significant economic ramifications. The Combined Expatriate Residence Permit and Alien Card (CERPAC) application process has been exceptionally drawn out. The official timeline states that there are several steps in the processing, which takes about eight weeks.
However, these timescales frequently take longer in reality, which causes delays in the start of expatriates’ jobs, which impacts Productivity and business operations thereafter. Businesses must report on the use of authorised expatriate quota posts on a monthly basis. Both the expatriates’ and their Nigerian understudies’ National Identification Numbers (NIN) are among the specific data needed for this process. Businesses may be subject to hefty fines for noncompliance, which would increase their administrative load. For foreign directors and other foreign employees, the Expatriate Employment Levy (EEL), which was implemented in 2024, levies an annual fee of USD 15,000 and USD 10,000, respectively.
Ministry of Interior have formed a committee to further examine reforms.
Although the goal of this levy is to promote local employment and talent transfer, there are worries that it will increase business operating costs and may discourage international investment. A number of economic consequences, including resource diversion, operational delays, and a deterrent to foreign investment, can result from the inefficiencies and extra costs connected with the expatriate employment system. Concerns have been raised by business executives about these difficulties. The Lagos Chamber of Commerce and Industry (LCCI) emphasised that the EEL might have unforeseen repercussions, such foreign businesses moving to nearby nations with better business climates.
Furthermore, these issues are being addressed by the Federal Government, which has recognised them. Representatives from the Organised Private Sector (OPS), the Nigeria Employers’ Consultative Association (NECA), and the Ministry of Interior have formed a committee to further examine and suggest reforms. Within a week, this group should have completed its recommendations, at which point the new guidelines will be made public. However, there is no information available regarding the precise date on which these guidelines will go into effect.
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Additionally, the introduction of the EEL suggests a significant expatriate workforce in Nigeria, even though precise numbers on the number of expats impacted by these issues are not easily accessible. Although precise goals for processing time reduction have not yet been disclosed, the government intends to use automation and Technology solutions to shorten the current three-month waiting period for acquiring CERPAC. Improving Nigeria’s investment climate and Economic Growth requires addressing the inefficiencies in the country’s expatriate employment system. If successfully carried out, the planned reforms might improve operational efficiency, lower operating expenses, and increase Nigeria’s appeal to foreign investors.