The Centre for the Promotion of Private Enterprise (CPPE) says that the implementation of the Federal Government’s new Expatriate Employment Levy [EEL] policy will gravely affect foreign direct investment, and the African Continental Free Trade Area [AfCFTA] that is gaining traction.
Muda Yusuf, the CPPE CEO, who expressed this concern, noted that although the broad objectives of the scheme are laudable, yet, there are serious consequences of the policy to the economy.
” The CPPE appeals to government to review the policy and undertake broader consultation to fine tune the policy to ensure that we do not hurt genuine investors in the country,” he said.
He noted that the country needs more direct investors than portfolio investors at this time.
But ironically, both foreign direct investors and domestic direct investors would be more negatively impacted than portfolio investors.
The economy needs more investors in the real economy – oil and gas, manufacturing, infrastructure, mining, ICT, Healthcare – all of which require varying skills and competencies.
The point is that FDIs by their very nature often need the investors to come with skilled personnel who understand and can operate the FDI equipment.
It is imperative to give some consideration to this class of investors, given the scale of their investments which could be in billions of dollars.
“...the country needs more direct investors than portfolio investors at this time.“
On the AfCFTA, he explained that Nigeria occupies a leadership position in Africa and very well respected.
” Our president is the current chairman of ECOWAS.
This policy does not make an exception for our African brothers and neighbours.
This is coming at a time when the African Continental Free Trade Area [AfCFTA] is gaining traction.
This policy could be a major setback for the continental economic integration vision. Besides many of our citizens are in many African countries.
They may be victims of a reciprocal actions by other African countries,” he said.
