Airline operators react to FG’s suspension of 4% FOB levy

By Ayox Ojo

The Airline Operators of Nigeria, AON, has described President Bola Tinubu and the Minister of Finance and Coordinating Minister of the Economy, Wale Edun suspension of the proposed 4 per cent Free on Board, FOB, levy on imports as a clear demonstration of commitment to create a business-friendly environment.

AON, in a statement issued by its President, Abdulmunaf Sarina on Tuesday also said the the gesture will protect critical sectors of the economy and promoting sustainable growth.

Edun had on Monday announced the FOB levy which has attracted condemnation from manufacturers, importers, and customs agents over claim that it would further worsen the inflation in the country.

The Minister, in a statement on Monday agreed that the levy introduced by the Nigeria Customs Service, posed risks to trade facilitation, economic stability, and Nigeria’s business climate.

He also acknowledged that the suspension followed widespread concerns raised by manufacturers, importers, and clearing agents, who argued that the levy would worsen inflation, erode trade competitiveness, and dampen the investment climate.

In a statement on Tuesday, AON agreed that the implementation of the proposed levy would have had severe consequences for airlines operating in Nigeria by increasing their operational costs even as they are already battling numerous economic headwinds.

The operators also said such a policy would have further negatively impacted the aviation sector potentially impacting job security, service delivery, and the overall competitiveness of Nigeria’s aviation sector.

Thus, the hailed Edun, describing him as a listening Minister while noting that his responsiveness to stakeholder concerns reflects deep patriotism and a strong commitment to fairness, diligence, and national economic development.

“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,” AON said while pledging its readiness to continue to work with the Federal Government strengthen the aviation industry.

The Association also pledged support for the President’s broader economic agenda.