There is no end in sight to the controversy generated by the introduction of a $300 helicopter landing levy for oil and gas companies, Daily Trust can report.
The helicopter landing levy is imposed on helicopter landing at oil rigs and platforms through a consultant, NAEBI Dynamic Concept.
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.
Follow us on WhatsApp | LinkedIn for the latest headlines
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.
However, the present Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, 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.
In a statement, he had said, "Following a meeting with the AON executive on the issue bordering on helicopter landing levies collection at aerodromes, helipads, air strips, etc., Minister of Aviation and Aerospace Development, Festus Keyamo, has temporarily suspended the enforcement granted Messers NAEBI Dynamic Concept Ltd, by the federal government, as consultants to collect such levies.
"The suspension is with effect from 30th May, 2024. This, the minister said, is as a result of clamour for review by some stakeholders in the industry.
"Accordingly, Keyamo has 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 are charged to look into the issues raised by concerned stakeholders and submit a report on or before end of June, 2024."
FG makes U-Turn
However, exactly one year later, the federal government has lifted the suspension, according to a circular signed by Akut D.S., General Manager, Air Traffic Control Operations, the Nigerian Airspace Development Agency (NAMA).
The circular titled, "Authority to Collect Helicopter Landing Levy by Messrs NAEBI Dynamic Concepts Ltd," dated May 15, 2025, directed to General Manager, Commercial, NAEBI Dynamic Concept, Director of Finance, NAMA, conveyed the lifting of 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 the levies from heliports, helipads, airstrips and aerodromes in line with its contract.
The letter read: "I am directed to convey the ministerial directive on the lifting of temporary suspension on enforcement of granted Messrs Naebi Dynamic Concept Limited, consultants for the collection of helicopter landing levies for air navigation services related to helicopter operations by companies.
"Messrs Naebi Dynamic Concept us to immediately resume collecting levies related to helicopter operations by oil companies operating at fields, platform terminals,rigs, FPSOs as well as heliports, helipads, airstrips and aerodromes in line with its contract.
"By this signal Naebi Dynamic Concept Ltd shall invoice companies directly and that helicopter operators (AON) members will neither be charged nor used to collect the levy."
But despite the approval, sources told Daily Trust that compliance is still very low with oil and gas companies contesting the $300 levy per landing at oil rigs and platforms.
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.
There are questions around who absorb the new cost of $300 if implemented with stakeholders suggesting a further increase in cost of oil production.
Managing Director, Aero Contractors, Capt. Ado Sanusi, stated that the levy amounting to N476,567, according to the official exchange rate, could increase the cost of oil production.
He said: "Definitely, 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. Cost of transportation and goods will definitely increase.
"There is no way the oil and gas companies will just absorb the $300 without passing it across to the consumers. The levy will just increase the burden in the oil and gas sector."
FG plans separate engagement with oil firms
Sources told our correspondent that the minister, in line with the reservation from oil companies, is planning another layer of engagement with the operators at the various floating production storage and offloading (FPSO) units.
It was gathered that the oil companies continue to question the rationale behind the levy and they are threatening to shut down operations if the levy isn't suspended.
32 oil rigs may be affected
Among the oil companies to be affected are Chevron, Shell, TotalEnergies and others who operate FPSOs. There are no fewer than 32 oil rigs amid the plan to raise oil production level.
An oil and gas industry analyst who refused to be named said, "The implication of this levy 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."
Spokesperson to the Minister of Aviation, Tunde Moshood, in a chat with our correspondent confirmed that there have been concerns from oil companies over the lifting of the suspension.
However, he stated that the minister would soon have an engagement with the oil firms to explain why the levy became imperative as it is the practice all over the world.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The minister's aide said it is another means of generating funds for the federal government.
Aviation analyst, Group Capt. John Ojikutu (rtd), said there was the need for the government to differentiate between landing and navigational charges and who collects what.
He said helipads are privately-owned just like private and state-owned airports. He stated that if the government is demanding helicopter landing fees, would it equally demand a separate landing fee from privately-owned airports?
He said, "The federal government and those advisers on landing charges for the helicopters should differentiate between landing and navigational charges and who collects what.
"Helipads are privately owned just as the private and state-owned airports. Would the FG direct too that landing fees at the privately owned airports should come into its purse?
"FG should concern itself with the navigational charges, otherwise, it must get itself prepared for insurance payments in the event of any accidents on any private helipads it has not owned or certified safe for landing.
"If those in the administration of our government and the management of the aviation agencies are looking for revenue sources, let them begin to collect revenue from aircraft operating from the non-security-controlled airports to the security-controlled airports. That is where most operating helicopters belong."
