X-raying issues, gains of $300 helicopter levy controversy

By Wole Shadare

 

 

No end in sight

The last may not have been heard about the helicopter levy introduced by Naebi Dynamic Concept Limited and approved by the Federal Government.

There is no end in sight to the controversy generated by the introduction of a $300 helicopter landing levy for oil and gas companies.

The Federal Government under former President Muhammadu Buhari had, through the Ministry of Aviation and Aerospace Development, introduced the levy, which airline operators, including oil companies, kicked against.

When this matter came up during the tenure of former Minister of Aviation and Aerospace Development, Hadi Sirika, the airlines protested against it because they felt the industry was overtaxed.

A memo emanating from the ministry had last year directed helicopter operators to compulsorily pay helicopter landing fees at all Nigerian aerodromes, helipads, airstrips, floating production storage and offloading (FPSO) units, floating storage and offloading (FSO) units and other oil platforms.

Suspension

However, the current Minister of Aviation and Aerospace Development, Festus Keyamo, announced the temporary suspension of the levy in May 2024.

He said further actions on the matter would be taken after a review committee submits its report for scrutiny.

The Minister after a meeting with Airline Operators of Nigeria (AON) temporarily suspended the enforcement granted Messers NAEBI Dynamic Concept Ltd, by the Federal Government, as consultants to collect such levies.

The Nigerian Airspace Management Agency (NAMA) had recently given oil companies operating helicopters a one-week ultimatum to comply with the levy.

Probe Keyamo quickly constituted a committee with members drawn up from the Ministry of Aviation and Aerospace Development and its relevant agencies, Airline Operators of Nigeria (AON), International Oil Companies (IOCs) and Messers NAEBI Dynamic Concept Ltd who was charged to look into the issues raised by concerned stakeholders and submit a report on or before end of June 2024.”

When everyone thought that the matter had been laid to rest and thrown out because of the kindness of the Minister in defending the cause of airline operators and the tenacity with the way he defended the operators, the Federal Government jolted everyone when he approved that helicopter operators would now pay for $300 levy and directed NAMA to take control of the new policy.

In a circular titled, “Authority to Collect Helicopter Landing Levy by Messrs NAEBI Dynamic Concepts Ltd,” dated May 15, 2025, directed to the General Manager, Commercial, NAEBI Dynamic Concepts, Director of Finance, NAMA, conveyed the lifting of the temporary suspension on enforcement granted to the company.

The circular stated that the company was empowered to collect landing levies for air navigation services related to helicopter operations by oil companies’ operations at airfields, platforms, terminals and rigs.

Also, the company is empowered according to the circular to collect levies from heliports, helipads, airstrips and aerodromes in line with its contract.

While members of the AON were said to have been exempted from paying the levy, there are fears that the oil companies may transfer the additional cost to the consumers.

High cost of operations

Not a few believe that the new levy or tax, who astronomically increase the cost of operations in the oil and gas sector, just as the levy amounting to N465,567, according to the official exchange rate, could increase the cost of oil production.

While helicopter operators have faulted the new levy imposition, NAMA and the promoter of the project, Naebi Concept, have continued to defend the introduction of the new levy, stakeholders are divided over what some described as double taxation and a huge drawback to the ease of doing business in the country.

For those who are irked by the tax, they argued that before the new fee was introduced, the helicopter companies had been paying all their taxes following industry regulations, insisting that the additional $300 landing fee is a burden on the operators, which may undermine the industry.

Knocks

The Managing Director of Aero Contractors, Capt Ado Sanusi, said: “It will add to the cost of oil production and the prices of oil products may once again rise. It will also add to the present inflation in the country.

As you add to the cost of production of crude oil, it will be added to the public. The cost of transportation and goods will increase. It will be extremely difficult for the oil and gas companies to absorb the $300 without passing it across to the consumers.

The levy will just increase the burden in the oil and gas sector.” The implication of this levy, according to critics, is that the cost of oil production will go up and it would be a disincentive to production at a time the government is agitating for increased oil production.

There are calls by concerned stakeholders for the Minister to take another look at the catalytic effects it will have on the entire oil and gas value chain, adding that before the new fee was introduced, the helicopter companies had been paying all their taxes in accordance to industry regulations, insisting that the additional $300 landing fee would be a burden on the operators which may undermine the industry.

Support

A former Director of Air Transport Management in the Federal Ministry of Aviation and Aerospace Development, Hassan Tai Ejibunu, countered the position of those criticizing the new levy called on oil companies engaging in offshore operations and other players who rely heavily on helicopter transport for personnel and equipment to comply with the regulatory enforcement regime approved by the Federal government.

He explained that the federal government’s introduction of the levy was part of its targeted contribution toward the maintenance, modernisation, and expansion of Nigeria’s air navigation infrastructure, which is now the backbone of both civilian and military aviation.

He said: “The levy, which is on a pay-as-you-use basis, is unavoidable and only charged for the use of Nigerian Airspace and NAMA Air navigational services. NAMA’s infrastructure supports not only commercial flights but also helicopter operations to offshore platforms, military surveillance, and increasingly, the regulation of unmanned aerial vehicles (drones) in our airspace. To suggest that oil companies, who are among the primary beneficiaries of these services, should be exempted from contributing to their sustainability is both inequitable and short-sighted.”

“Offshore oil operations rely heavily on helicopter transport for personnel and equipment. These flights depend on NAMA’s radar systems, communication networks, and air traffic control to ensure safety and efficiency. Without adequate funding, these systems risk degradation, which could lead to delays, accidents, or worse—security breaches. Indeed, the absence of modern navigational infrastructure is a national security risk. As NAMA has flagged, outdated equipment and poor inter-agency coordination already pose threats to aviation security.”

Ejibunu said in an era of heightened drone activity and evolving aerial threats, the ability to monitor and manage Nigeria’s airspace in real-time is no longer optional, but essential.

According to him, “The military, too, relies on NAMA’s infrastructure for coordinated operations, making its upkeep a matter of sovereignty. Moreover, the levy aligns with global best practices. Similar charges exist in other oil-producing nations, where aviation infrastructure is funded through user-based contributions.”

Last line

This issue has been on the front burner for over a year. Neutrals are of the view that the Federal Government should take a second look at the issue to reach an amicable resolution that would be a win-win for all.

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