Nigeria’s aviation industry has welcomed a significant policy shift, as the federal government halted the proposed four percent Free on Board (FOB) levy on imports. The move, announced by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, has drawn praise from the Airline Operators of Nigeria (AON), who say the decision will shield the sector from mounting economic strain.
Relief for a Struggling Industry
In a statement signed by AON President Abdulmunaf Sarina, operators described the suspension as proof of President Bola Tinubu’s determination to foster a business-friendly environment and protect industries under pressure. According to the group, enforcing the levy would have triggered higher operational costs for airlines, potentially threatening jobs, reducing service quality, and eroding Nigeria’s competitiveness in the global aviation market.
Why the Levy Sparked Pushback
The FOB levy, introduced by Customs, had been widely criticized by manufacturers, importers, and clearing agents who warned it would worsen inflation, disrupt trade, and weaken investor confidence. The Finance Minister acknowledged these concerns, noting that the levy posed risks to both trade facilitation and overall economic stability.
Aviation Sector at the Forefront
While multiple industries voiced concerns, the aviation sector stood to suffer disproportionately. Already navigating rising fuel prices, currency depreciation, and infrastructure costs, airlines argued the levy would further destabilize operations. AON emphasized that the suspension prevents additional burdens that could have undermined recovery efforts in one of Nigeria’s most vital yet fragile industries.
Leadership that Listens
The operators applauded Edun’s “listening ear,” describing his intervention as patriotic and pragmatic. They noted that his responsiveness to stakeholder concerns reflects a commitment to fairness and national development. “This bold and thoughtful step safeguards aviation, protects jobs, eases inflationary pressures, and ensures Nigeria remains competitive globally,” the group said.
A Signal of Policy Direction
The suspension of the FOB levy not only provides immediate relief but also signals the administration’s broader intention to stabilize the economy through inclusive, dialogue-driven policymaking. For the aviation industry, it represents a rare win at a time when cost pressures continue to mount—highlighting the government’s recognition of the sector’s role in trade, connectivity, and economic growth.
