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Helicopter Operators Threaten Shutdown Over $300 New Levy

by Harry Choms
May 6, 2024
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Helicopter operators providing services to oil rigs across Nigeria are on the brink of halting operations due to a new $300 levy imposed by the federal government through the Ministry of Aviation and Aerospace Development. This levy, aimed at collecting funds via NAEBI Dynamic Concept, a contracted consultant, has sparked controversy among operators who view it as illegal.

Despite denouncing the levy during the initial stakeholders’ meeting, Minister of Aviation Festus Keyamo later supported it, claiming it was in Nigeria’s best interest. A recent directive from the minister mandated operators pay helicopter landing fees to the consultant at various aviation facilities and oil platforms. Failure to comply would result in sanctions.

In response, operators have threatened to ground operations, citing the levy’s novelty in an industry where they already pay statutory fees to aviation agencies. They argue that the new charge is unnecessary, given their compliance with existing regulations and fees paid to relevant authorities.

Aero Contractors’ Managing Director, Capt. Ado Sanusi emphasized that operators already pay for services rendered to them and questioned the rationale behind the additional levy. Olumide Ohunayo, General Secretary of Aviation Roundtable, criticized the letter’s direct address to operators instead of the concerned agencies, highlighting the lack of proper communication channels.

While defending the charges, Minister Keyamo stressed the importance of regulating helicopter operations and claimed that the levy would bring much-needed revenue to the government. Despite inheriting the project, he deemed it beneficial for Nigeria’s aviation sector.

The impending standoff between helicopter operators and the government threatens oil exploration efforts, further exacerbating Nigeria’s struggle to meet its OPEC quota. As the situation unfolds, stakeholders hope for a resolution that balances revenue generation with industry sustainability and regulatory compliance.

Tags: Festus KeyamoHelicopter Operators
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