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FG Reinstates Offshore Helicopter Levy, Oil Companies To Bear Cost

by By Zakari Abdulkadir
3 months ago
in Business
Reading Time: 2 mins read
oil,FG Reinstates Offshore Helicopter Levy,Oil Companies To Bear Cost
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The federal government has reinstated the $300 helicopter landing levy on offshore operations, with the financial burden now shifted from helicopter operators to the oil companies that lease their services.

This development was disclosed by the minister of aviation and aerospace development, Mr Festus Keyamo, during an interview on Arise Television. The minister said that although helicopter operators had initially opposed the fee, they eventually consented to its reintroduction after a series of consultations.
However, the operators argued that they should not be responsible for the levy as they lease their helicopters to oil companies. They maintained that absorbing the fee would lead to increased charter charges, which would ultimately be passed on to the oil firms hiring their aircraft.

“There was a lot of rancour, especially among the Airline Operators of Nigeria, over the helicopter landing levy. So I suspended it. I told a small committee to look into it — whether this practice exists anywhere else in the world,” Mr Keyamo said.
“The airline operators that protested were part of that committee. I told the committee, unless you reach an agreement with the operators, I will not go on with this. So they went into dialogue, and at the end of the day, they agreed. The airline operators have signed, and I have the document agreeing to the fee,” he added.

The minister explained that while the operators agreed to the reinstatement, they were adamant that they would not bear the cost.
“They said they will not be the ones paying because they lease their helicopters to oil companies. If you pass the levy on to them, they will have to increase their charter fees. So now, the final responsibility is with the oil companies,” Keyamo stated.
He further revealed that oil companies have expressed reservations about taking on the cost of the levy, prompting the formation of a new committee to address their concerns.

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The minister clarified that the helicopter levy was not introduced during his tenure, but was part of agreements signed by the previous administration. He said the policy, which mandates levies on helicopters landing at offshore helipads, aligns with international aviation norms and aims to support the operations of agencies such as the Nigerian Airspace Management Agency (NAMA).

Tags: FG Reinstates Offshore Helicopter LevyOil Companies To Bear Cost
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