The Airline Operators of Nigeria (AON) have commended President Bola Ahmed Tinubu and the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, for the suspension of the proposed 4% Free on Board (FOB) import levy, describing the move as timely and vital for Nigeria’s economic stability.
In a statement issued Tuesday and signed by AON President Abdulmunaf Sarina, the group said the decision underscores President Tinubu’s commitment to creating a business-friendly environment, protecting key sectors like aviation, and supporting long-term sustainable growth.
“This bold and thoughtful intervention will go a long way in safeguarding the aviation sector, protecting jobs, reducing inflationary pressures, and ensuring that Nigeria remains competitive in the global business environment,” the statement read.
The now-suspended levy had sparked widespread criticism from manufacturers, importers, and customs agents, who warned it would escalate inflation, raise the cost of doing business, and further weaken trade competitiveness.
Finance Minister Wale Edun, acknowledging these concerns, explained that the policy’s suspension was informed by the overwhelming feedback from economic stakeholders.
“The levy, introduced by Customs, posed risks to trade facilitation, economic stability, and Nigeria’s business climate,” Edun said.
The AON noted that if implemented, the FOB levy would have had severe consequences for airlines operating in Nigeria. The group warned it would have led to:
- Higher operational costs
- Job losses across the aviation value chain
- Reduced service delivery capacity
- Diminished competitiveness of Nigerian carriers in regional and global markets
At a time when the aviation industry is battling challenges like foreign exchange volatility, high fuel costs, and limited access to credit, AON said the additional levy would have been a devastating blow.
AON lauded Finance Minister Edun for what it described as “exemplary, responsive leadership”, saying his willingness to engage stakeholders reflects deep patriotism and a strong commitment to fairness.
“His responsiveness to stakeholder concerns reflects deep patriotism and a strong commitment to national economic development,” AON stated.
The Airline Operators reaffirmed their commitment to collaborating with the Federal Government to strengthen Nigeria’s aviation industry, support policy development, and align with President Tinubu’s broader economic reform agenda.
The group emphasized that constructive government-stakeholder engagement is critical for designing policies that protect strategic sectors while maintaining fiscal discipline.
Background: What Is the FOB Levy?
The Free on Board (FOB) levy is a 4% charge proposed by the Nigeria Customs Service on imported goods, calculated based on their shipment value before export. Critics say the charge would have compounded import costs, particularly affecting businesses reliant on aviation, manufacturing, and logistics.
Following the backlash, the Federal Government announced the suspension of the policy a move now widely praised as an economic relief measure.
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