FG Gives Oil Operators Given 7-days to Pay $300 Helicopter Landing Fee

• The Nigerian federal government and oil corporations are at odds over a $300 helicopter landing fee imposed by the NAMA
• Despite a temporary suspension of the fee in May 2024, FG has now lifted the suspension, demanding payment or risk enforcement measures
• NAMA insists that the levies align with global best practices, supporting air navigation infrastructure and aviation safety

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

The federal government, multinational oil corporations (IOCs), and operators of floating production storage and offloading (FPSO) units in Nigeria are set for a clash after a seven-day deadline for paying the $300 helicopter landing fees.

The ultimatum was issued by the Nigeria Airspace Management Agency (NAMA) on Tuesday in a notification published in several national newspapers.

Platforms affected by levy

Through a consultant, NAEBI Dynamic Concept, the helicopter landing levy is applied to helicopter landings on oil rigs and platforms.

Oil corporations and airline operators have opposed the charge, which was implemented by the federal government under former President Muhammadu Buhari through the Ministry of Aviation and Aerospace Development.

Helicopter operators were instructed by a ministry memo last year to pay helicopter landing fees at all Nigerian airstrips, helipads, aerodromes, floating production storage and offloading (FPSO) units, floating storage and offloading (FSO) units, and other oil platforms.

In May 2024, Festus Keyamo, SAN, the current Minister of Aviation and Aerospace Development, declared that the charge would be temporarily suspended. He stated that after a review committee presents its findings for consideration, further steps would be taken on the matter.

However, according to a recent circular signed by Akut D.S., General Manager, Air Traffic Control Operations at the Nigerian Airspace Development Agency (NAMA), the federal government lifted the suspension exactly one year later.

Despite this decision, oil and gas companies continue to challenge the $300 fee for each landing at oil rigs and platforms, according to information obtained by Daily Trust.

7-days ultimatum

NAMA gave the affected operators seven days to comply on Tuesday. For air navigation services provided by NAMA within Nigerian airspace, including operations at Oil Fields, Terminals, Platforms, Rigs, Floating Production Storage and Offloading (FPSO) units, Helipads, Airstrips, and Aerodromes, NAMA emphasized in the notice the necessity of full compliance with the Agency's provision regarding the prompt payment of helicopter landing levies.

It clarified that since 2022, the agency has regularly sent out numerous written messages to inform oil and gas businesses of the statutory terms of the NAMA Act in collaboration with Naebi Dynamic Concepts Limited.

According to the agency,

“These proactive efforts have not yielded the desired compliance, due to the influence of certain individuals who have worked with them against adherence to established regulatory requirements.”

NAMA explained that the agency may decide to shut down and relocate facilities used for unauthorised navigational operations within Nigerian airspace in line with Section 8(3) of the Act.

“As responsible and law-abiding international corporate entities, the Nigerian Airspace Management Agency (NAMA) hereby calls on all affected oil companies to, within seven (7) days from the date of this publication, formally communicate to Naebi Dynamic Concepts Ltd their proposed payment plans and modalities for applicable air navigation levies.”

“Failure to comply within the stipulated time frame will trigger appropriate enforcement measures, including the denial of flight clearances for helicopter operations to Oil Fields, Terminals, Platforms, Rigs, Floating Production Storage and Offloading (FPSO) units, Helipads, Airstrips, and Aerodromes.”

“This action is undertaken not merely to enforce regulatory compliance, but to safeguard national security, enhance aviation safety, promote operational sustainability, and ensure the continued efficiency of Nigeria’s aviation ecosystem, all in alignment with international obligations and globally accepted best practices,” he said.

FG reintroduces $300 helicopter landing fee

Legit.ng reported that one year after suspending the $300 helicopter landing fee, the Minister of Aviation and Aerospace Development, Festus Keyamo, has reintroduced the levy.

Keyamo had suspended the fee after criticisms from aviation experts and stakeholders, who cited the illegality of the payment to a private company, NAEBI Dynamic Concept.

The minister, however, said that further action would be taken on the issue after due consultation and the review committee's submission of its report.

Source: Legit.ng