Following protests from stakeholders, the federal government suspends the $300 fee for helipads

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Minister of Aerospace Development Festus Keyamo on Friday approved the temporary suspension of the controversial $300 landing fee for helicopters outsourced to Messer’s NAEBI Dynamic Concept Limited.

In a statement by the ministry’s spokesperson, Odutayo Oluseyi, the minister’s directive took effect on May 30, 2024.

According to the information, the minister’s decision came after the Airline Operators of Nigeria (AON) rejected the fee on the grounds that it would be economically damaging to helicopter operators and the Nigerian economy in general.

He said further action would be taken on the matter after a committee of inquiry submitted its report for scrutiny.

The statement read: “Following a meeting with AON management on an issue of collection of heli landing fees at aerodromes, helipads, runways, etc., the Minister of Aerospace Development, Festus Keyamo, has temporarily stayed the enforcement order issued by the Federal Government against Messers NAEBI Dynamic Concept Ltd, a consultancy firm to collect such fees.

“The suspension will take effect from May 30, 2024. This is as a result of calls for a review by some industry stakeholders, the minister said. Accordingly, Keyamo has set up a committee with members from the Ministry of Aerospace Development and its relevant agencies, the Airlines of Nigeria (AON), the International Oil Companies (IOCs) and Messer’s NAEBI Dynamic Concept Ltd, which is mandated to study the issues raised by the concerned stakeholders and submit a report no later than end of June 2024.

“Messers NAEBI Dynamic Concept Ltd has been granted exclusive rights as a consultant by the Federal Government to levy such levies, with stakeholders having expressed concerns about the appropriateness of the levies. The Committee’s recommendation(s) would provide a way forward.”

LEADERSHIP reports that aviation stakeholders view the numerous taxes imposed on airlines as a burden on the sector.

Furthermore, government agencies in this sector focus on generating higher revenues without adding any corresponding value, which is completely contrary to their founding purpose of being non-profit.

Each domestic airline in the country is subject to taxes totalling 13.5 per cent. This includes a ticket sales fee of five per cent (charter/cargo), VAT of 7.5 per cent and a development tax of one per cent. And this is all before applicable corporation tax, PAYE, pension schemes etc.

For this reason, the introduction of a $300 landing fee for helicopters was widely condemned, with those involved describing it as commercially damaging to their operations.