FG suspends USD 300 helicopter landing fee one month after introduction

The Federal Government, through the Ministry of Aerospace Development, has temporarily suspended the US$300 helicopter landing fee charged by its concessionaire NAEBI Dynamic Concept Limited.

This announcement was made by Mr. Odutayo Oluseyi, Head of the Department of Press and Public Affairs, in a statement on Friday.

The suspension comes just a month after the federal government granted NAEBI Dynamic Concept Limited sole authority to collect helicopter landing fees nationwide.

According to the statement, the levy has been suspended to allow the ministry to address urgent concerns raised by industry stakeholders. However, the suspension does not mean that the concession or mandate of the consultants responsible for collecting the levy will be revoked.

“We wish to clarify the matter here by stating that the Minister, Mr Festus Keyamo (SAN), has temporarily suspended the project to further investigate the issues raised by stakeholders.

“Contrary to reports to the contrary, this suspension does not entail the revocation of the concession and mandate of the consultants responsible for collecting the tax.

“Instead, a comprehensive review is currently underway to address the issues and develop a forward-looking approach.

“A specially established committee, comprising representatives of the Ministry, its relevant authorities, Nigeria’s airlines and the International Oil Companies (IOCs), is working to achieve this goal,” The statement read in part.

More insights

The statement also provided insight into the objectives of the committee set up to address concerns raised by industry stakeholders regarding the helicopter levy.

• The aim of the Committee is to develop a workable framework for implementing compliance with landing duty payments, thereby ensuring a win-win situation for all parties involved.
• It was stressed that the Committee’s recommendations would be crucial for the future collection of helipad fees across the country, thus ensuring a sustainable and thriving aviation industry.
• Furthermore, the statement urged stakeholders in the aviation sector to remain calm while a solution is worked on to ensure the continued growth and success of the aviation industry in Nigeria.

Background story

In an official memo dated 25 April 2024, signed by the Minister of Aerospace Development Festus Keyamo, the Federal Government authorised Men NAEBI Dynamic Concept Limited to levy exclusive heli landing fees at all aerodromes, helipads, runways, floating production, storage and offloading units (FPSO), floating storage and offloading units (FSO) and oil platforms across Nigeria.

The memo required all operators and participants in civil helicopter operations in Nigeria to comply with the directive or face sanctions.

As a result, helicopter operators were required to pay a newly introduced landing fee of US$300, which NAEBI Dynamic Concept Limited would collect on behalf of the Nigerian government.

However, this directive has raised concerns among operators, leading to non-compliance.

Some operators questioned why payments should be made to a private company’s account rather than through the federal government’s unified financial account.

Others argued that NAEBI Dynamic Concept Limited had not provided infrastructure commensurate with the fees charged.

In addition, some operators complained that the helicopter landing fee combined several existing aviation taxes.