The helicopter operators operating in Nigeria have issued threats to halt operational activities in response to new charges imposed by the federal government through the Ministry of Aviation. If this happens, it could result in Nigeria losing more than 1.1 million barrels of oil per day. A new directive from the Ministry of Aviation and Aerospace Development mandates helicopter operators to pay mandatory landing fees at all designated locations within Nigerian airspace, including aerodromes, helipads, airstrips, floating production storage and offloading (FPSO) units, floating storage and offloading (FSO) units, and various oil platforms.
As contained in a memo released by Minister Festus Keyamo, it was announced that landing fees will now be collected by a private company, NAEBI Dynamic Concept Limited adding that any failure to follow this instruction will result in consequences as per the memo. During a recent television interview, Keyamo discussed how he took over the project and gave it his approval, as he believed it would increase revenue for the government. He also mentioned that the company plans to establish necessary infrastructure, hire employees, and send profits to the Federal Government cover.
Operators argued that landing fees being unnecessary.
However, helicopter companies are adamant about not paying the landing fees and have warned that they will halt all operations if the government continues to demand payment. Experts argue that 95 percent of helicopter activities in Nigeria are related to the oil and gas sector, and caution that if operations are suspended, the country’s crude oil production could plummet to 300 bpd from the current 1.3 million bpd. Furthermore, the most recent heliport certification list approved by the Nigeria Civil Aviation Authority (NCAA) shows that oil production helidecks make up a majority of over ninety percent out of the total 105 listed, as of April 2024.
Captain Ado Sanusi, CEO of Aero Contractors, a pioneer in helicopter shuttles for oil and gas services in Nigeria, stated to the media that helicopter companies could potentially cease operations or take legal action. According to him, the landing fees are unnecessary as the operators already compensate for the services provided to them. The helipads used for offshore operations and other locations are owned by international oil companies, not the government. He also mentioned that the operators ensure they pay all required charges to aviation authorities.
Monitoring helipads is exclusivity to the military.
He bemoaned the fact that while the International Civil Aviation Organization (ICAO) suggested that government agencies within the aviation sector should focus on cost recovery, these agencies have been transformed into profit-driven organizations by the government. Sanusi noted that identifying and monitoring all helipads in Nigeria for security purposes is the responsibility of the National Security Adviser (NSA), the Air Force, and other relevant security agencies, emphasizing its exclusivity to the military and not civil matters.
According to him, there is no such thing as a free application, as they all require a fee to be paid. Every time a helicopter touches down at an airport in Nigeria, Federal Airports Authority of Nigeria (FAAN) personnel or their representatives are present to collect landing fees. Sometimes operators must cover agency fees and purchase air tickets separately for NCAA officials traveling for inspections. In Nigeria, helicopter operators are obligated to pay 5 percent of passenger flight costs to the NCAA for each commercial flight.
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In the aviation sector, operators are feeling overwhelmed, leading to stagnation in the industry as a hub for financial losses, according to industry experts. Operators shared with the media that the heavy burden they face is hindering growth. Additionally, a high-ranking official from a prominent helicopter company in Nigeria disclosed to the media that the landing fee is not legally recognized, as it is not regulated by the NCAA. The operator views this action as a deliberate attempt to hinder the government’s efforts to boost crude oil production in the nation.
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