Nigeria imposes a mandatory annual levy on organizations employing foreign workers.
These levies must be paid $15,000 (£12,000) for directors and $10,000 for other departments.
The move is aimed at encouraging foreign companies to hire more Nigerian workers.
Employees of diplomatic missions abroad and government employees are exempt.
President Bola Tinubu has warned that the levy must not be used to frustrate potential investors.
He was speaking at the launch of the Foreign Employment Tax (EEL) manual on Tuesday, adding that the government expected to improve revenue and indigenization.
He said he aimed to equalize employment opportunities between Nigerians and expatriates.
“The objective is to close the wage gap between expatriates and the Nigerian workforce while increasing employment opportunities for skilled Nigerians in foreign companies in the country,” he said.
He said it was hoped that the implementation of the program would be clear to achieve its objectives.
There are more than 150,000 foreign nationals in Nigeria, local media reported, citing data from the Ministry of Interior.
They mainly work in the oil and gas, construction, telecommunications and service industries.
The move comes as Nigeria endures its worst economic crisis in a generation, which has led to widespread anguish and anger in recent months.
Unions and government workers demonstrated on Tuesday to protest economic hardship.
Mr. Tinubu acknowledged that Nigerians were going through difficult times.
He said efforts were being made to improve the country’s finances and stimulate the economy.
This tax applies to employees who work more than 183 days a year.
The scheme imposes fines of up to three years and imprisonment of up to five years for individuals or organizations that fail to comply, including by failing to provide accurate information.
The Nigerian Immigration Service is responsible for enforcing the levy.
Local media quoted Home Affairs Minister Olubunmi Tunji Oji as saying it would operate on a public-private partnership model between the government, the Immigration Department and private companies.