The Federal Government has reinstated the $300 offshore helicopter landing levy, shifting the burden of payment from helicopter operators to oil companies.
This development was revealed by the Minister of Aviation and Aerospace Development, Festus Keyamo, during an interview on Arise TV on Tuesday.
The Minister explained that while helicopter operators initially protested the fee, they eventually agreed to its implementation after engaging in dialogue. However, the operators insisted they should not bear the cost themselves, since they lease their helicopters to oil companies.
They argued that absorbing the levy would force them to raise their charter fees, which would ultimately impact the oil companies that hire their services.
“There was a lot of rancor, especially among the airline operators of Nigeria, over the helicopter landing levy. So I suspended it. I said, Look, I said to a small committee, look into this. Is this practice existing anywhere in the world?
“The airline operators that protested were part of that committee. So I told them (the committee), unless you reach an agreement with the airline operators, I will not go on with this. So the airline operators went into dialogue with them (the committee).
“And they (the committee) did agree at the end of the day. Airline operators have agreed and signed. I have the document agreeing to the fee,” Keyamo stated.
He added, “But they (airline operators) said, they will not be the ones paying. Because they (airline operators) rent their helicopters out to oil companies. If you (the committee) pass it (the helicopter landing levy) on to them (airline operators), they have to increase their charter fee. So now, the last vestige of this is now the oil companies.”
The Aviation Minister, however, revealed that oil companies have raised objections to absorbing the levy, leading him to establish a committee to address their concerns.
More insights
Minister Festus Keyamo explained that the offshore helicopter landing levy was introduced before his tenure, under agreements signed by the previous administration.
- These agreements mandated charges on helicopters landing at offshore helipads, a common practice worldwide to ensure agencies like the Nigerian Airspace Management Agency (NAMA) have funds to cover their operations.
- Keyamo noted that the levy was suspended about a year ago after helicopter operators protested its fairness, particularly because a private company, Messrs NAEBI Dynamic Concept Limited, was collecting the fee on behalf of the government.
Following a detailed review, a committee including airline and helicopter operators confirmed the levy aligns with international standards and should continue. However, they agreed that payment responsibility should shift from helicopter operators to the oil companies that lease the helicopters.
The Minister emphasized that this levy is government revenue and not private profit.
What you should know
In April 2024, the Federal Government authorized Messrs NAEBI Dynamic Concept Limited to collect a $300 helicopter landing levy at Nigerian aerodromes, helipads, floating production storage and offloading (FPSO) units, floating storage and offloading (FSO) units, and oil platforms.
- By June 2024, the levy was temporarily suspended following protests from helicopter operators over its fairness and collection process.
- A committee with representatives from the Ministry of Aviation, relevant agencies, airline operators, and International Oil Companies (IOCs) was formed to address concerns and establish a fair framework.
- After months of dialogue, helicopter operators agreed to reinstate the levy but insisted the payment responsibility shift from them to the oil companies leasing their helicopters.
- As of May 2025, the Federal Government has officially reinstated the levy, with ongoing efforts to resolve objections from oil companies through a dedicated committee.
