Airline Operators Praise Suspension of 4% Import Levy, Cite Relief for Industry

Airline operators in Nigeria have applauded the Federal Government’s decision to suspend the 4 percent Free-on-Board (FOB) import levy, saying the move offers much-needed relief for the aviation sector and the wider economy. The Airline Operators of Nigeria (AON) described the suspension as a bold and thoughtful intervention that will protect the industry against a severe increase in operating costs.

In a statement signed by AON President Alhaji Dr. Abdulmunaf Sarina and Vice President Barr. Allen Onyema, the group commended President Bola Ahmed Tinubu and Finance Minister Wale Edun for acting in response to industry concerns. The operators said the suspension is a demonstration that the government is listening to its stakeholders and is committed to creating a business-friendly environment.

AON noted that the levy, had it been implemented, would have placed an additional burden on airlines already coping with high energy costs, exchange rate volatility, expensive spare parts, and rising global maintenance costs. For many carriers, aircraft maintenance, spare‐parts procurement, leases, and international operations all depend heavily on imported inputs that are denominated in foreign currency. Any increase in import costs translates directly to higher operating expenses, with the risk that such costs would ultimately be passed on to passengers in the form of higher fares.

The operators also emphasised that the aviation industry, already under pressure from inflation and weakened consumer demand, could have suffered job losses and financial instability if the levy had been enforced. They welcomed the suspension as a measure that will protect jobs, prevent cost inflation, and help maintain competitiveness both domestically and in international routes.

MAN (Manufacturers Association of Nigeria) also joined in commending the government, noting that the suspension of the import charge — which had been causing concern across several sectors — is essential for reducing cost pressures for manufacturers and service providers who depend on imported machinery and raw materials. The manufacturers pointed out that industries beyond aviation will benefit, and that easing import burdens is urgent in a context of high inflation and tight margins.

Airline operators stressed that this policy reversal helps restore some stability in planning and budgeting. With the levy off the table, carriers can now better forecast costs for spare parts, airframe servicing, and fleet maintenance. This predictability is important for ticket price stability. Many long-haul and regional airlines that rely on parts from abroad had expressed anxiety over additional levies compounding other challenges such as port handling fees, air navigation charges, and fuel costs.

AON’s statement praised the leadership of Finance Minister Wale Edun, calling him “responsive” and “patriotic” for heeding concerns raised by industry players. The operators described the decision as reflecting President Tinubu’s mandate for fairness, transparency, and inclusive policy making. They said it reaffirms the idea that economic interventions should be balanced to protect sensitive sectors.

Critics and airline stakeholders had warned earlier that the FOB levy would worsen inflation, ramp up costs for imported aviation parts and equipment, and risk grounding some operations. The suspension is seen as avoiding those negative outcomes. Industry watchers believe the removal of the levy may help curb inflationary pressures on tickets and spare parts, especially given Nigeria’s reliance on foreign exchange for many aviation inputs.

While welcoming the suspension, airline operators urged the government and customs authorities to follow up with clear implementation guidelines. There is a call for swift removal of the levy from import systems and port documentation to ensure that the measure is effectively suspended. They also encouraged further consultations with stakeholders to review the levy framework in a way that protects revenue without harming critical industries.

Many in the aviation sector view this as an opportunity to push for broader reforms that can lower operating costs. Suggestions include reducing other import-related charges, improving infrastructure at airports and seaports to speed up clearing, and more support for local maintenance and repair facilities so as to reduce dependence on imported parts wherever feasible.

Public reactions among travellers and smaller operators have been positive. Some expect that fares might stabilise or even fall if airlines can pass on savings from lowered import cost burdens. However, some caution that savings will only materialize if freight, handling, and foreign exchange costs do not rise.

The suspension also comes at a time when Nigeria is trying to attract investment, stabilize the naira, and moderate inflation. Industry stakeholders believe that policies which help reduce cost pressures are essential to restoring confidence. For airlines, this measure could mark the beginning of more predictable regulatory and fiscal regimes.

In conclusion, the airline operators regard the government’s suspension of the 4% FOB levy as a relief that protects the aviation sector from severe cost shocks, helps preserve jobs, and supports economic competitiveness. Moving forward, they hope that this decision will usher in further reforms to ease doing business, stabilise costs, and ensure that Nigeria’s aviation industry remains resilient amid global uncertainties.