The Airline Operators of Nigeria (AON) has welcomed the federal government’s suspension of the four per cent Free-on-Board (FOB) levy on imports, saying the measure will safeguard jobs and protect the aviation industry from collapse.
In a statement on Tuesday, the association said the suspension is “a clear demonstration” of President Bola Tinubu’s commitment to a business-friendly environment, protection of critical sectors, and sustainable growth.
“The levy, if implemented, would have had severe consequences for airlines in Nigeria, leading to higher operating costs, further straining an industry already contending with multiple economic challenges,” AON said.
The operators commended Finance Minister Wale Edun for listening to industry concerns and acting in what they described as fairness to all sectors of the economy.
The FOB levy was introduced earlier this year by the Nigeria Customs Service as a 4 per cent charge on the Free-on-Board value of imports — the cost of goods at the port of export, excluding shipping and insurance.
It was intended to replace existing charges such as the Comprehensive Import Supervision Scheme (CISS), which previously stood at 1 per cent.
However, the sharp increase triggered widespread opposition from importers, manufacturers, and trade associations.
The Importers Association of Nigeria (IMAN) warned that the policy would add trillions of naira annually to freight costs, worsen inflation, and reduce Nigeria’s competitiveness against neighbouring countries with lower port charges.
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The aviation sector, which relies heavily on imported aircraft parts and equipment, argued that the levy would have significantly raised operating expenses and put jobs at risk.
The suspension, announced on 16 September, followed strong pushback from multiple sectors.
AON said the intervention would “go a long way in safeguarding the aviation sector, protecting jobs, reducing inflationary pressures, and ensuring Nigeria remains competitive in the global business environment.”
The body also reaffirmed its commitment to working with the federal government to strengthen aviation and contribute to the realisation of President Tinubu’s vision for economic growth and national development.