Introduction
Migration is a global trend. Countries around the world are experiencing a significant increase in cross-border movement either as origin countries of migration or destination countries. This phenomenon is largely driven by economic, educational, and personal motivations and in turn, occasions demographic, economic, and political effects. A key aspect of migration is the movement of highly skilled professionals as expatriates. Nigeria is not left out of the global trend and has experienced an influx of highly skilled professionals. The country's large market and natural resources serve as drivers for the immigration of foreign skilled workers. The presence of expatriates within Nigeria has grown significantly over the years, prompting the need for a comprehensive analysis of the country's immigration policies in comparison with other jurisdictions. This article delves into the dynamics of expatriate presence and immigration policies in Nigeria and explores similarities and differences in a global context.
Expatriate Phenomenon in Nigeria
Nigeria has emerged as a hub for multinational corporations and international organizations. As a result, the country has seen a surge in the number of expatriates entering its borders for employment and other purposes. According to Oxford Learners Dictionary, Expatriates otherwise known as Expats are persons living in foreign countries.1 However, in the context of this article, the use of "expats" refers to foreign nationals residing and working in Nigeria, either employed by Nigerian entities, foreign entities, or joint ventures that have been duly registered and have the requisite business permit to operate legally in Nigeria.2
The motivations driving Expats to Nigeria are diverse, and to regulate and channel this influx effectively, our law provides for quotas for expatriates per organization, including their eligibility criteria as established by the Ministry of Interior (the "Ministry"). Additionally, the country has other immigration policies designed to manage entry, residence and activities within its borders. These policies encompass various categories, including work permits, residence permits, and visitor visas, and are formulated to ensure a controlled environment.
Accordingly, any organization seeking to employ Expats must apply to the Ministry for the grant of an expatriate quota in line with the Immigration Act, 20153 ("the Act") and Immigration Regulations, 20174 (the "Regulation"). The Act and Regulation stipulate that employment, partnership, or business activities by foreign nationals in Nigeria unless exempted, require the consent of the Comptroller General of Immigration or the Minister of Interior.5
Categories of Expatriate Quota
The Act provides for different categories of expatriate quotas issued for diverse purposes. The "ordinary expatriate quota" is issued for 3 years and renewable twice for a total lifespan of seven years, except for applicants in the oil and gas industry, which is issued for an initial two-year period, and renewable once within four years.6 The "Permanent Until Reviewed" ("PUR")' permits wholly foreign and joint venture companies to elevate the status of Expats in top managerial positions from holders of renewable expatriate quotas to permanent holders. Also, the "Project Tagged Expatriate Quota" is given to deserving companies to engage the services of expatriates for specific and timed projects and may be extended for one (1) year on the application of the company, having adduced satisfactory reasons.7 Other categories include Detagging Expatriate Quota and Redesignation Expatriate Quota. Generally, the grant of an expatriate quota depends largely on the nature, relevance, and duration of the position to be held by the Expat.
After the Grant, what next?
Obtaining an expatriate quota does not operate as an automatic visa to Nigeria. Following the quota approval, the company must apply for a Subject-To-Regularization ("STR") visa and a Resident Permit for the Expat, and upon regularization, a Combined Expatriate Resident Permit and Aliens Card ("CERPAC"). Thus, a resident permit and visa must be issued concurrently8, to authorize an Expat to work legally in Nigeria.9 It must be noted that unless a company obtains the relevant permits necessary to allow a foreigner to work and live in Nigeria, it may be charged with illegal smuggling of the Expat, an offence punishable with a five-year imprisonment term, payment of one million Naira fine or both.10
Despite the law, some companies in Nigeria either exceed their expatriate quotas or fail to apply for permits altogether. Apart from facing regulatory sanctions, the illegal employment and smuggling of expats pose adverse economic and social consequences11. On 10 May 2023, the former Nigerian Minister of Interior, Rauf Aregbesola, released a cautionary circular regarding violations of Nigeria's immigration policy on expatriate quota, where he stated the intention of the Federal Government to disclose companies in contravention of the country's laws on Expatriate quota. He opined that "The use of regulatory task force to ensure compliance became imperative in view of abuses and gross violations of the expatriate quota policies by foreign investors and Nigerian companies alike. Before now, I had appealed to foreign companies, nationals, and their governments to begin to respect our laws and warned them that it will no longer be business as usual." 12
Benefits of Compliance
The following have been identified as the advantages of adhering to the laws governing the issuance of expatriate quotas:
- Enhancement of Sustainable Economic Growth: compliance ensures that foreign workers are recruited as needed, thereby preventing oversaturation of the labour market with expatriates. It also encourages companies to hire and train Nigerian workers, fostering skill development and job creation within the country.
- Mitigation of Capital Flight: capital flight, characterized by money leaving a country, often through foreign companies' repatriation of profits, can be curbed by companies complying with expatriate quotas. Hiring more local workers implies that employees would retain a larger portion of their earnings within Nigeria, thereby strengthening the nation's economy and financial stability.
- Fostering Patriotism and Local Engagement: prioritizing Nigerian workers in key positions demonstrates a commitment to the nation's growth and development. Companies that invest in training and developing local talents cultivate patriotism and loyalty among employees and consumers.
- Facilitating Skills Transfer and Knowledge Sharing: employing expatriates in accordance with the quota regulations creates opportunities for skills transfer and knowledge sharing between expatriate workers and local employees. This exchange can enhance the capabilities of the local workforce, resulting in improved efficiency, productivity, and innovation.
- Leveraging Local Knowledge and Cultural Understanding: hiring more local employees enables companies to tap into a deeper understanding of the local market, culture, and consumer preferences. This can lead to product and service offerings tailored to the needs of the Nigerian population.
- Ensuring Legal and Regulatory Compliance: strict compliance with these immigration policies helps companies avoid legal issues, penalties, and reputational damage associated with violations. This safeguards the company's reputation and operations and fosters positive relationships with the Nigerian government and communities.
Global Perspectives
The immigration laws of the UK and the USA exemplify how these two countries have set parameters that ensure that immigrants generally bring about societal benefits, and the control measures for limiting the negative effects of immigration, such as housing deficit.
United States of America
The USA is renowned for its diverse immigrant population and complex immigration system. It offers various pathways for skilled and unskilled workers to enter its workforce. For example, the H-1B visa allows highly skilled foreign workers to be employed in the USA temporarily, while the EB-5 visa program attracts individuals seeking permanent residency through investment.13
The USA maintains a reputation for strict immigration policies. This strictness stems from a deep understanding of the potential economic, security, and humanitarian consequences that a massive influx of immigrants could cause the country. It also shows that the country's policymakers recognize that uncontrolled immigration could lead to increased unemployment, strain on social services, and potential security risks. To address these concerns, the US Immigration and Nationality Act 2023 (as amended), in its Section 201, places a general limit on the total number of immigrants that can come to the United States each year. Furthermore, there is an additional yearly limit on the number of immigrants admitted via employment preference. For example, in the 2022 Fiscal Year, only 18.1 percent of the total US workforce was recorded to be immigrants, connoting a minimal percentage of immigrants admitted to the United States through the employment preference category in 2022.14
To ensure the enforcement of these limits and the integrity of the immigration system, sophisticated technology and highly trained personnel are deployed to immigration points through programs like the United States ICE Mutual Agreement between the Government and Employers ("US IMAGE"). These personnel scrutinize and e-validate the authenticity of all documentation presented to US Immigration and Customs Enforcement ("ICE") officers upon the arrival of any immigrant, ensuring that the immigration process remains secure and transparent.15
United Kingdom
The UK is renowned for its rich history and diverse culture. The country attracts individuals all over the world through various visa categories. The UK's Points-Based System ("PBS") introduced in 2021 is a notable feature of its immigration policy, emphasizing skills, qualifications, and contributions to the nation's economy.16
The PBS provides the UK government with a structured framework to control immigration by setting specific criteria and quotas for different categories of visas. This control helps prevent the indiscriminate entry of individuals and ensures that only those who meet the criteria are allowed to enter. It is adaptable and it prioritizes skilled professionals, students, and investors who can make meaningful contributions to the UK's economy and society, thereby, allowing the UK to easily respond to changing labour market demands and research priorities while enhancing public confidence in the country's immigration policies. This demonstrates that the government is actively managing immigration to benefit the country and reduce incidences of illegal immigration.
The UK's PBS is a significant bolster to the nation's economy as strategically attracting skilled workers, entrepreneurs, and investors has helped fill labour gaps, enhanced innovations, and driven productivity in the UK. This infusion of talent fosters economic growth, reduces welfare dependency, increases tax revenue, and strengthens the country's global reputation as a hub for talent and business.17 In August 2023, the Immigration Advise Service (IAS), UK reported a net contribution of £42.4 billion to the economy from immigrant skilled workers.18 It demonstrates that the UK's carefully enact its policies to align with the nation's economic needs. This approach makes the UK's immigration policy a flexible and versatile tool for maintaining and improving its economic health.19
Conclusion
Compared to Nigeria, the USA and the UK's immigration systems are generally more expansive and intricate, reflecting the nation's commitment to balancing the need to maintain a controlled immigration process with the need to serve its economic objectives. Nigeria on the other hand is yet to align its immigration system with its economic goals. Given the pivotal role played by expatriates and immigration policies in the identity of a nation, it goes without saying that Nigeria must strengthen its immigration framework. Moreso, as Nigeria shapes its position on the international stage, immigration policies will be vital in harnessing expat engagement while safeguarding the interests of the local population.
Recommendations
- Periodic Training for Immigration Officials: Regular training programs that cover global immigration policy updates, anti-corruption measures, ethical standards, technological integration, case studies, and best practices for immigration officials are essential. Such training enhances their understanding of industry policies, nuances, and their importance to the national economy.
- Implementation of an Expatriate Quota Limit System: Similar to the US and UK's immigration limits or sector-specific quotas, Nigeria should establish a clear quota system. This system should ensure transparency in allocation, periodic quota adjustments, rigorous compliance enforcement, and a focus on skills transfer and training. This approach would align expatriate admissions with national interests and contribute to sustainable economic growth.
- Adoption of E-Validation for Immigration Documents: As against the rampage of the manual system of validating the documentation of immigrants, the National Immigration Service should adopt a comprehensive e-validation system. By so doing, Nigeria can significantly improve its ability to detect false documents and prevent illegal expatriate entry. This would improve national security and ensure that only expatriates with legitimate documentation gain entry into the country.
Footnotes
1. Oxford Learners Dictionary https://www.oxfordlearnersdictionaries.com/definition/english/expat?q=expat.
2. Section 36 (1)(b) of the Immigration Act, 2015.
3. Part V, Section 36 (1) and 38 of the Act.
4. Part III, Section 12 (1) and (2) of the Regulation.
5. From the last survey conducted by Statistica in 2019, the total number of expats that were in Nigeria was 1.3million https://www.statista.com/statistics/1231717/number-of-international-migrants-in-nigeria/.
6. Paragraph 2.3 of the Handbook on Expatriate Quota Administration, Revised 2022. Ministry of Interior https://ecitibiz.interior.gov.ng/Content/HandbookOnExpatriateQuota/HANDBOOK.pdf hereinafter referred to as "the Handbook."
7. Paragraph 2.11 and 2.12 of the Handbook.
8. Paragraph 12(4) of the Regulation.
9. Section 11 of the Regulation.
10. Section 38 (5) of the Act.
11. Adepegba (2022) FG probes Indorama, Total, and 10 others over expatriate quota. https://punchng.com/fg-probes-indorama-total-10-others-over-expatriate-quota/.
12. Odeniyi, S (2023) FG to sanction firms violating expatriate quota policy, Punch Newspapers. Available at: https://punchng.com/fg-to-sanction-firms-violating-expatriate-quota-policy/.
13. William A. Kandel. (2018, February 9) U.S. Family-Based Immigration Policy. (Washington, DC: Congressional Research Service).
14. Klobucista, C., Cheatham, A., & Roy, D. (2023, June 6). The U.S. Immigration Debate. Council on Foreign Relations https://www.cfr.org/backgrounder/us-immigration-debate-0.
15. The US IMAGE https://www.ice.gov/outreach-programs/image.
17. The influx from the PBS skilled workers amounted to 12% of the UK Gross Value Added (GVA). Department of Business and Trade (2023). Professional and Business Services. Professional and business services - great.gov.uk international https://www.great.gov.uk/international/content/investment/sectors/professional-and-business-services/.
18. IAS Editorial Team. (2023, August 16). The effect of immigration on the UK economy: IAS. Immigration Advice Service https://iasservices.org.uk/the-effect-of-immigration-on-the-uk-economy/#effects-on-employment.
19. Crown. (2022, March). A Points-Based System: Making Migration Work for Britain, https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/272243/6741.pdf.
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