LAGOS, NIGERIA – Tension is rising fast in Nigeria’s oil and aviation sectors as the Federal Government (FG) and international oil companies (IOCs) lock horns over the controversial $300 helicopter landing levy. The Nigeria Airspace Management Agency (NAMA) has issued a seven-day ultimatum to major oil companies and operators of floating production, storage, and offloading (FPSO) units, warning that failure to pay the fee will result in immediate grounding of helicopter flights to oil rigs, helipads, and other critical sites.
This development has set the stage for a major industrial showdown, with the potential to disrupt Nigeria’s vital oil and gas industry and aviation safety infrastructure.
Since 2022, the FG, through NAMA, has been pushing for the collection of a $300 fee for every helicopter landing at oil rigs, platforms, and related facilities.
The fee is collected by a private consultant, Naebi Dynamic Concepts Ltd, and is intended to help fund the maintenance and upgrading of Nigeria’s air navigation systems.
“These levies are essential to sustaining the maintenance, upgrading, and acquisition of modern air navigation infrastructure,” NAMA explained in a recent statement.
“They are in line with international best practices and are already being implemented in many countries around the world.”
The agency insists that the levy is not a new tax but a necessary cost-recovery measure to ensure the safe and efficient management of Nigeria’s airspace, especially as the use of helicopters, drones, and fixed-wing aircraft continues to grow.
Why Are Oil Companies and Helicopter Operators Resisting?
Despite the government’s arguments, oil companies and helicopter operators have been fighting the levy tooth and nail. Their main concerns include:
Many operators claim they already pay for air navigation services through other fees and levies. Helipads and platforms on oil rigs and FPSOs are often owned and maintained by the oil companies themselves.
The use of a private consultant, Naebi Dynamic Concepts Ltd, to collect the fee has raised questions about transparency and accountability.
“We have issued multiple written communications since 2022 to engage oil and gas operators,” NAMA said.
“But our efforts have not yielded the desired compliance, due to the influence of certain individuals who have worked against adherence to established regulatory requirements.”
A Brief History
The $300 helicopter landing levy was first introduced under the administration of former President Muhammadu Buhari, through the Ministry of Aviation and Aerospace Development. The policy immediately sparked strong opposition from airline operators and oil companies, who argued that it was an unnecessary financial burden.
In May 2024, the current Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, temporarily suspended the levy and set up a review committee to examine its legality and implementation. However, one year later, the suspension was lifted, and the FG is now determined to enforce the levy.
The Ultimatum: Seven Days to Comply or Face the Music
On Tuesday, NAMA published a strict notice in national newspapers, giving oil companies and helicopter operators just seven days to submit their payment plans and start paying the $300 levy.
“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,” the notice read.
“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.”
In plain terms: no payment, no flights.
What Happens If Companies Don’t Pay?
If oil companies and helicopter operators refuse to pay, NAMA has the authority to shut down and relocate facilities used for unauthorized navigational operations.
This could have serious consequences for Nigeria’s oil and gas sector, where helicopters are the primary means of transporting workers, equipment, and supplies to remote and offshore locations.
“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,” NAMA said.
Industry experts warn that a standoff could threaten oil production, with the potential to lose over 700,000 barrels of oil per day if helicopter operations are disrupted.
This would not only hurt the companies involved but also have a major impact on Nigeria’s economy, which relies heavily on oil exports.
FG’s Stand: Safety, Security, and International Standards
The FG and NAMA are standing firm, insisting that the levy is not just about money—it’s about safety and security. They point out that similar fees are charged in Europe, Asia, and the Americas, and that Nigeria needs to keep up with global best practices to ensure safe skies for everyone.
“These levies are essential to sustaining the maintenance, upgrading, and acquisition of modern air navigation infrastructure, critical for the safe and efficient management of Nigeria’s airspace, particularly given the growing operations of drones, helicopters, and fixed-wing aircraft,” NAMA emphasized.
The agency also warned that it may shut down and relocate facilities used for unauthorized navigational operations, in line with Section 8(3) of the NAMA Act.
Oil Companies’ Response
On the other side, oil companies and aviation operators are not backing down. Many have threatened to take legal action and even shut down operations if the FG insists on enforcing the levy.
“We already pay for the services we use, and the helipads and platforms are ours,” said one industry insider. “Why should we pay extra to a private consultant? This is just another way to squeeze more money out of us.”
Some operators have also raised concerns about the lack of consultation and the suddenness of the ultimatum, arguing that the FG should have engaged in more dialogue before resorting to enforcement.
What’s at Stake for Nigeria?
The outcome of this seven-day ultimatum could have far-reaching effects for Nigeria:
A shutdown of helicopter flights could halt operations at many oil rigs and platforms, leading to huge losses for the economy. Without proper funding, Nigeria’s air navigation systems could deteriorate, putting lives at risk.
International investors could lose confidence in Nigeria’s regulatory environment, making it harder to attract new investment. Thousands of workers in the oil and aviation sectors could be affected if operations are disrupted.
Several industry experts have shared their views on the controversy:
“This is a classic case of regulatory overreach,” said Dr. Adeola Ogunleye, an energy analyst based in Lagos. “While it’s important to maintain and upgrade our air navigation systems, the government needs to find a more collaborative approach with industry stakeholders.”
“The use of a private consultant to collect the fee is problematic,” added Captain Musa Ibrahim, a veteran helicopter pilot. “There are questions about how the money will be used and whether it will actually benefit the aviation sector.”
Quote of the Day
“In times of crisis, collaboration beats confrontation. Nigeria’s oil and aviation sectors are too important to be held hostage by regulatory disputes. The government and industry must come together to find a solution that works for everyone.”
— Chief Emeka Okonkwo, Chairman, Aviation Safety Foundation of Nigeria
As the clock ticks down, all eyes are on the oil companies and the FG. Will the oil giants pay up and comply, or will they dig in their heels and risk a shutdown? One thing is certain: the next seven days will be critical for Nigeria’s oil and gas sector—and for the safety of its skies.
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