The Airline Operators of Nigeria (AON) has thanked President Bola Tinubu and the minister of finance and coordinating minister of the economy, Mr Wale Edun for suspending the 4% free on board (FOB) levy earlier introduced on imports.
The airlines’ association made the commendation in a statement made available to journalists in Lagos.
“This suspension is a clear demonstration of President Tinubu’s commitment to creating a business-friendly environment, protecting critical sectors of the economy, and promoting 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,” the statement said.
The association particularly praised Edun for his “exemplary leadership as a listening minister who has shown deep patriotism and responsiveness by heeding the concerns of stakeholders.
“His decision reflects a strong commitment to carrying out the mandate of the President with diligence, sensitivity, and fairness to all sectors of the economy.
“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 AON reaffirmed its commitment to working closely with the government to strengthen the aviation industry and contribute to the realisation of the government’s vision for economic growth and national development.
FOB is an international shipping term primarily used for sea freight. It applies to the sale of goods and indicates that purchased property will be placed on board a vessel for shipment at a designated place without expense to the buyer for packing, portage, cartage, etc.
The seller covers costs and risks up to delivery onto the vessel at the named port, after which the buyer assumes responsibility for all subsequent costs and risks.
For air, rail or road freight, other terms like free carrier (FCA) are used instead of FOB.
