Airline operators hail suspension of 4% import levy

The Airline Operators of Nigeria have commended President Bola Tinubu and the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, for the timely suspension of the proposed four per cent Free on Board levy on imports.

A statement signed by the President of AON, Abdulmunaf Sarina, and made available to The PUNCH on Tuesday described the suspension as a “clear demonstration of President Tinubu’s commitment to creating a business-friendly environment, protecting critical sectors of the economy, and promoting sustainable growth.”

It will be recalled that the FOB levy caused outcry among manufacturers, importers, and customs agents over claims that the new levy would worsen inflation in the country.

The Minister of Finance said the levy, introduced by Customs, posed risks to trade facilitation, economic stability, and Nigeria’s business climate. 

Edun explained 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.

However, the AON said the proposed levy, if implemented, would have had severe consequences for airlines operating in Nigeria, significantly increasing operational costs in an industry already grappling with numerous economic headwinds.

The operators stressed that such a policy would have further strained aviation operators, potentially impacting job security, service delivery, and the overall competitiveness of Nigeria’s aviation sector.

AON particularly lauded the Minister for what it called “exemplary leadership as a listening Minister”, noting that his responsiveness to stakeholder concerns reflects deep patriotism and a strong commitment to fairness, diligence, and national economic development.

The statement partly reads, “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 group reaffirmed its readiness to collaborate with the Federal Government on efforts to strengthen the aviation industry, pledging its support for the President’s broader economic agenda.