BY OLAPEJU OLUBI
Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, has asked those thinking the Ministry was bluffing when it recently unveiled the new $300 per landing fee for helicopter operators to have a rethink as the levy has come to stay.
He said the new rule, which is also a cost recovery measure, is consistent with international best practices and designed to enhance the quality of helicopter operations in Nigeria.
The Minister in a statement emphasised that helicopter landing levies are commonplace in countries such as the United States, the United Kingdom, India, and various regions worldwide, wondering why Nigeria should be an exception. “For instance, Tallahassee International Airport in Florida began implementing helicopter landing levies under Vector Airport Systems on October 1, 2022. Helicopter landing levies are common across airfields in the United Kingdom, ranging from major commercial ones to small general aviation fields. Typically, helicopter levies match or exceed those for fixed-wing aircraft, varying based on factors like location and services provided”, Keyamo explained.
He added that the Federal Government has granted NAEBI Dynamic Concepts Limited exclusive rights to collect helicopter landing levies in line with the MoU between NAEBI Concept and NAMA (focal Agency), Federal Airport Authority of Nigeria (FAAN) and the Nigeria Civil Aviation Authority (NCAA).
“It is instructive to note that NAMA under the Act as amended in 2022 is empowered to collect aeronautical revenues in both the upper and lower airspace to support her self-sustainability.
However, over the years NAMA has predominantly relied on the upper airspace for her revenue generation. Government in her wisdom having discovered a lacuna on the lower airspace where helicopter operations is dominant directed NAMA to live up to her responsibilities to enable them generate enough resources to sustain their aeronautical architecture, enhance security and surveillance, and improve the overall quality of helicopter operations in Nigeria.
“We are confident that this move will improve capacity, efficiency, safety, security, and attract more investment in the aviation industry. We encourage all stakeholders to be committed to this laudable initiative that has followed due processes and procedures, and should embrace the new normal.
“The Ministry of Aviation recognizes the importance of helicopter operations in Nigeria’s aviation industry and is committed to implementing international best practices in helicopter operations through its agency – Nigeria Airspace Management Agency (NAMA)”, he added.
Meanwhile, the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) have opposed the new landing charges imposed on helicopter operators by the Federal Ministry of Aviation.
The Unions in a joint statement, condemned the decision, which includes a 4 per cent charge on the gross revenue of helicopter operators, along with additional levies and taxes. They emphasized that this decision is seen as a significant threat to the sustainability of the helicopter transport sector, which plays a crucial role in Nigeria’s oil and gas industry.
As advocates for the growth of Nigeria’s economy, NUPENG and PENGASSAN therefore urged the government to “immediately withdraw this landing fees on helicopter operators serving the oil and gas industry in the overall interest of the country.” They emphasize the need for a business-friendly environment that supports sector growth and provides relief to businesses during challenging economic times.
The statement was signed by the General Secretary of NUPENG, Afolabi Olawale, and the General Secretary of PENGASSAN, Lumumba Okugbawa, marking a unified stance from both organizations in the face of these new financial burdens.
Citing the impact of the decision at what they described as a critical time within the business sphere, they added, “This is very insensitive at a time when the federal government is shopping for investors in the oil and gas industry and muting various incentives to make the industry attractive. The oil and gas industry is a critical component of Nigeria’s economy, and the helicopter operators serving this sector play a vital role in its success.”
They added that the operators being taxed provide essential transportation services, moving personnel and equipment to offshore platforms and remote locations, ensuring the smooth and efficient operation of the industry.
According to them, this unpopular decision has a detrimental impact on the sector, as this incremental cost is going to be passed on to the chartering companies who will in turn transfer the burden to the employees in the sector.
The new policy requires helicopter operators to pay for heliport landing fees at all Nigerian heliports, airports, floating production storage, offshore facility (FPSO) units, and other platforms, aiming to generate more revenue for the federal government. However, the unions view this as an affront to investors in the oil and gas industry, which is already competing for more investments.
