Maximizing Revenue from Expatriates’ Employment and Tinubu’s Economic Vision
The increasing desire to diversify the country’s revenue sources has initiated discussions regarding the expansion of the government’s income base. The government is focused on reducing its heavy reliance on oil by promoting other sectors, which aligns with the Bola Tinubu administration’s agenda to elevate the GDP to a trillion-dollar economy within the next seven years.
Currently, there is an emphasis on evaluating the revenue potential from expatriates’ employment. Expatriates, also known as foreign workers, are regarded as highly skilled individuals who are employed due to their expertise in fields where local talent may be insufficient. However, there are now deliberations about broadening the contribution base of expatriates’ employment in order to generate more income for the country.
At present, expatriates are mandated to pay an annual fee of approximately $2000 for a Combined Expatriate Residence Permit and Alien Card (CERPAC) to be eligible for employment. There are talks aiming to unlock additional revenue from the approximately 200,000 expatriates in the country, potentially bringing in between $1.5 billion and $2 billion per year.
The proposal suggests that expatriates should be compelled to contribute more, considering that their income is locally generated. This aligns with the government’s objective of exploring alternative approaches to address the country’s significant debt, burgeoning population, and the $3 trillion gap required for infrastructure development in the next two decades.
The proposal has precedence, as numerous countries, including Singapore, Japan, and Cambodia, have implemented similar measures to limit the influx of foreign workers in sectors where locals can excel. It also addresses the disparity between the financial responsibilities of expatriates and citizens, as well as the absence of a specific law overseeing the revenue system for expatriates in Nigeria.
The potential advantages of increasing expatriates’ contributions are extensive, including elevating employment rates, diminishing the demand for foreign exchange, and establishing a fair playing field for Nigerian workers. This change also has the potential to enhance the standing of Nigerian workers and ultimately benefit the country’s economy.
In conclusion, the strategy to maximize revenue from expatriates’ employment is a component of a broader economic vision aimed at steering the country towards sustainable growth and development. It is an initiative designed to rectify the existing imbalances in the system and create opportunities for the advancement of the nation as a whole.
By Modupe, Public Policy Analyst
