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    Home > Blog > Oil Sector at Risk as Helicopter Firms Reject New Landing Fee

    Oil Sector at Risk as Helicopter Firms Reject New Landing Fee

    Goli InnocentBy Goli InnocentNovember 8, 2024Updated:November 8, 2024 Economy No Comments2 Mins Read
    Festus-Keyamo Aviation-Minister (Petroleumprice.ng)

    Helicopter service providers for Nigeria’s oil and gas industry are firmly resisting a proposed $300-per-landing levy by NAEBI Dynamic Concepts Limited, which could disrupt critical operations. This levy, endorsed by the Nigerian Airspace Management Agency (NAMA) and the Ministry of Aviation and Aerospace Development, requires operators to sign a Memorandum of Understanding (MoU) consenting to the charge.

    In a letter to Aviation Minister Festus Keyamo, the Airline Operators of Nigeria (AON) challenged the levy as illegal, citing that helicopter firms already comply with Nigerian Civil Aviation Regulations (NCAR) fees. The oil companies, they added, view this charge as a hidden tax that may compel them to suspend activities if enforced.

    NAEBI’s proposed levy has sparked concerns about regulatory overreach. The AON’s letter argues that under the Nigerian Airspace Management Act, NAMA cannot delegate air navigation services to third parties. It also highlights that NAEBI lacks certification as an Air Navigation Service Provider (ANSP) from the Nigerian Civil Aviation Authority (NCAA) and has no authorisation from the Infrastructure Concession Regulatory Commission (ICRC), which oversees public-private partnerships.

    Operators stress that the levy violates International Civil Aviation Organisation (ICAO) principles, including non-discrimination, transparency, and stakeholder consultation. The NCAA previously opposed a similar charge in 2018, deeming it double taxation, as existing fees already cover platforms and airstrips across the Niger Delta.

    Without ICRC approval, operators argue, the proposal lacks legal standing and threatens industry stability. Further negotiations with the Ministry and relevant authorities may be required to reach an agreement that ensures both compliance and continuity in oil and gas operations.

    NAEBI NAMA NCAA
    Goli Innocent
    Goli Innocent

      Goli Innocent Goli Innocent is an energy journalist and digital strategist covering Nigeria’s downstream oil sector. He delivers real-time analysis on logistics, pricing, and policy for platforms and stakeholders.

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