Subsequent to a stakeholder’s engagement aimed at a review of the Expatriate Quota (EQ) handbook in October 2021, the Federal Ministry of Interior (“FMI” or the “Ministry”) issued a Public Notice implementing additional guidelines to regulate EQ, related matters and business residency in Nigeria (the “Guidelines”). The Guidelines became effective on 24 January 2022 and is intended to ensure the effective monitoring and utilization of the facilities granted to organisations with business operations in Nigeria.

The Ministry expects that the Guidelines will enable it to achieve its objective of successfully regulating expatriate employment and related business operations in Nigeria.

What is new?

i. Company facility inspection

Organisations are now required to subject their company facility to inspections and pay a Company Inspection fee as part of the application fees to obtain additional EQ positions as well as to renew existing positions in their EQ portfolio. This fee ranges from ₦45,000.00 to ₦150,000.00 , depending on whether the inspectors will require flights and overnight stays for the purpose of the inspection.

ii. Appraisal of all EQ positions granted on permanent until reviewed basis

In line with the approval of the Honourable Minister of Interior, the Ministry shall conduct an appraisal of all EQ positions granted on Permanent until Reviewed (PUR) status by the Ministry from the inception of the facility to date. The exercise will enable the Ministry evaluate the continued eligibility of the relevant organisations to hold these approvals. Consideration will be given to the length of time the instrument has been held and the extent of utilisation of each facility. The deadline for compliance with the above directive was28 February 2022. EQ positions on PUR status that are not submitted by the deadline will be deemed to have lapsed and the Ministry will accordingly withdraw its relevant approvals.

iii. Electronic monthly returns submission

Organisations that have been granted EQ facilities are now required to submit their Expatriate Monthly Returns on the utilization of such facilities online via ecitibiz.interior.gov.ng. The returns must contain the National Identity Numbers (NIN) of the expatriates and their Nigerian understudies.

iv. Immigration consultant registration

Organisations are required to formally write to introduce their representative/consultant to the Ministry through the Office of the Director, Citizenship and Business Department. The letter must contain the details of the representative/consultant including 2 copies of recent passport photographs and a photocopy of the official identification card.

v. New fees (implementation suspended)

Although now suspended due to stakeholder outcry, the Guidelines increased the official fees for immigration services. The suspended fees are stated below:

a. Automation and processing fees

The automation and processing fee for each service rendered under an EQ grant is ₦100,000.00.

b. Renewal of expatriate quota

An EQ grant once issued is valid for a period of 2 – 3 years and renewable upon expiration. At the expiration of the quota, the company is required to renew the quota to continue to employ expatriates on a long-term basis. The following applicable fees will be paid by the company in addition to the processing fee:

1. Approval Fee: ₦50,000.00
2. Portal Fee: ₦50,000.00

c. Project-tagged quota grant

A project-tagged quota is issued to companies that intend to employ foreign nationals for the sole purpose of executing a specific project. The following applicable fees will be paid by the company in addition to the processing fee:

1. Approval Fee: ₦50,000.00
2. Portal Fee: ₦50,000.00

d. Redesignation of PUR (Permanent Until Reviewed) positions

A redesignation of PUR, is the process whereby a company re-allots their PUR (Permanent Until Reviewed) status from one foreign national to another foreign national. The following applicable fee will be paid by the company in addition to the processing fee:

1. Approval Fee: ₦2,500,000.00;
2. Portal Fee: ₦1,000,000.00.

e. PUR upgrade

A PUR upgrade allows companies to elevate an Expatriate Quota Position to a Permanent Until Review (PUR) status. The following applicable fees will be paid by the company in addition to the processing fee:

1. Approval Fee: ₦5,000,000.00
2. Portal Fee: ₦2,000,000.00

The Ministry through its official website has recalled the increased statutory fees for all EQ facilities recently published on its website in February 2021. The recall was as a result of the outcry by stakeholders on the exorbitant increment which was released without notice.

As a result, the old fees were re-instated and will be charged till a further update is issued by the Ministry. Please refer to the fee link ecitibiz.interior.gov.ng for the current applicable statutory fees.

Conclusion

The implementation of the Guidelines is a welcome development as it should enable the government tackle EQ abuse and EQ racketeering as well as realize an investor friendly EQ policy, which will facilitate the transfer of specialized skills and knowledge to Nigerians while advancing Nigerian content.

As Nigeria slowly begins to open up for business post-COVID, the Ministry may also wish to revisit the amount charged companies for EQ and inspection fee to encourage investors and address investors’ concerns on the high cost of doing business in Nigeria.

Stakeholders however fear that the introduction of the additional requirements such as company inspection and company immigration consultant/representative may potentially extend the length of time for obtaining additional EQ approvals from the Ministry. It is hoped that the Ministry will streamline the inspection process to ensure that the time of obtaining the approval is in line with the government’s ease of doing business programme in Nigeria.

If your company is affected, we urge that you to take note of this development and plan accordingly. Dentons ACAS-Law is available to provide additional clarification and support on this development.