By Francis Ajuonuma
The Airline Operators of Nigeria (AON) has announced the suspension of compliance with the recently introduced 4% Free on Board (FOB) levy, describing it as a “policy misstep” that could cripple the aviation sector and worsen Nigeria’s economic woes.
In a communique issued after a critical review of the policy, AON said the levy — imposed on all cargo exports — was ill-timed, ill-conceived, and potentially destructive to Nigeria’s already fragile aviation industry.
The operators warned that implementation of the charge would not only undermine competitiveness but also risk collapsing local airlines.
According to AON, Nigerian carriers are already battling high operating costs due to volatile foreign exchange rates, skyrocketing fuel prices, multiple taxation, and inadequate infrastructure.
Adding another 4% levy on air freight, the group argued, would further push airlines to the brink, discourage exports, and erode investor confidence in the economy .
The association stressed that aviation plays a critical role in trade facilitation, cargo movement, and economic diversification.
Any additional burden, it said, would cascade down the value chain — hurting farmers, manufacturers, exporters, and ultimately consumers.
AON urged the federal government to immediately suspend the policy and convene broad consultations with stakeholders to explore alternatives that would not suffocate operators or discourage exports.
The group insisted that “such fiscal measures must be carefully weighed against their impact on strategic sectors,” warning that failure to act could trigger job losses, capital flight, and further economic downturn .
The body also highlighted that the 4% FOB levy runs contrary to Nigeria’s push to expand non-oil exports and diversify its economy.
By raising the cost of doing business, the policy could make Nigerian products less competitive in regional and global markets, reversing recent gains in trade promotion.
While suspending compliance, AON said it remained committed to dialogue with relevant ministries and regulatory bodies.
The operators called for constructive engagement that balances government revenue needs with the survival of the aviation industry and the broader economy.
“The aviation sector is the lifeblood of trade and connectivity. If airlines collapse under the weight of unworkable policies, the damage will extend far beyond aviation to every corner of the economy,” the communique concluded.
