Helicopter Landing Fees Dispute Resurfaces Four Years after Between FG, Operators
The helicopter landing fee has reignited a four-year-long dispute between the Federal Government and operators in Nigeria’s aviation sector.
The aviation industry in Nigeria finds itself mired in renewed contention as helicopter operators and oil companies resist a contentious landing fee of $300 per landing, recently reimposed by the federal government.
This policy, originally conceived four years ago, failed to take off and was subsequently overshadowed by other developments.
The issue resurfaced last year but was shelved once more. To the industry’s astonishment, it was reinstated in May 2025, triggering widespread discontent among stakeholders who contend that the fee imposes an additional burden on an already overtaxed and struggling sector.
The administration of the late President Muhammadu Buhari had introduced a policy mandating International and Local Oil Companies to pay $300 for each helicopter landing on oil platforms, rigs, airstrips, aerodromes, and helipads nationwide.
The Airline Operators of Nigeria (AON) vehemently opposed the policy at its inception, arguing that the fees were illegal, poorly conceived, and exploitative.
Captain Roland Iyayi of Top Brass Aviation Limited, a trustee of the AON, criticized the policy, stating, “It defies logic. You’re demanding payments in dollars while prohibiting dollar transactions.
You’re taxing helicopter operators who already shoulder multiple levies without offering anything in return.”
Iyayi provided a detailed account of the levy’s implications for helicopter operators, using a typical Chevron contract as an example. He explained that in a contract where a single-engine helicopter like the 407 is required, the monthly standing charge is $350,000, regardless of usage. With an hourly charge of $1,500, 100 hours of usage in a month would amount to $150,000. Adding this to the standing charge results in $500,000. For an operator providing five helicopters to Chevron, with 70 daily landings, the $300 per landing fee amounts to $21,000 daily. Over 28 days, this totals $588,000 in landing charges from a $2.5 million contract. Operators also face a 7.5% VAT, 5% withholding tax, and 1% development tax, totaling 13.5% in federal taxes. Including the 5% NCAA charter sales charge, the tax burden reaches 22.5%. Adding the $588,000 landing charges, operators are effectively paying 42.5% of earnings in taxes before corporate tax.
This leaves little to cover operational costs, threatening the viability of helicopter operations.
According to Daily Sun’s calculations, a company like Chevron, with 70 daily landings, would incur $21,000 daily in landing charges. With 200 helipads, heliports, airstrips, aerodromes, and floating production storage and offloading platforms across the country, a single daily landing at each facility would generate $60,000.
If Chevron alone conducts 70 landings daily, or a minimum of 50, adding the 200 other facilities would result in a conservative estimate of 250 daily landings, amounting to $75,000 (N120 million at N1,600/$) daily.
Intense pressure from stakeholders prompted a government response. In May 2024, the current Minister of Aviation and Aerospace Development, Festus Keyamo, announced a temporary suspension of the levy to allow a comprehensive review by a committee including representatives from the Ministry, agencies, AON, IOCs, and NAEBI Dynamic Concept Ltd.
On May 15, 2025, precisely one year after the suspension, the federal government lifted it. A circular titled “Authority to Collect Helicopter Landing Levy by Messrs NAEBI Dynamic Concepts Ltd,” signed by Akut D.S., General Manager, Air Traffic Control Operations of the Nigerian Airspace Management Agency (NAMA), authorized NAEBI Dynamic Concept to resume collection immediately.
The directive’s reinstatement reignited the three-year-long conflict between operators and the government. In early July 2025, NAMA exacerbated the situation by issuing a 7-day ultimatum to all stakeholders, including IOCs, demanding payment plans and receipts, threatening to withhold start-up clearances for non-compliant operators. Despite the ultimatum, reports indicate that several helicopter operators and oil firms have not complied with the directive. Operators continue to challenge the fee’s legality. Aero Contractors’ Managing Director, Captain Ado Sanusi, a former MD of NAMA, argued that under International Civil Aviation Organisation (ICAO) principles, charges are primarily for cost recovery, necessitating investment to provide value to customers.
He asserted that by the Act establishing NAMA, the agency is the sole provider of Communication, Navigation, and Surveillance (CNS) services. “The $300 fee is not part of ICAO’s charges for cost recovery because an investment must be made to recover costs. If they claim an investment has been made, they should reveal it to Nigerians, demonstrating what has been invested in surveillance, navigation, or communication. But without such investment, imposing a levy is unjustified. If an investment exists, it should be disclosed to the world,” he stated.
He warned against setting a dangerous precedent, saying, “Today, if the government allows charging $300 to helicopters per landing, tomorrow another will come and say it’s $500. Next year, someone might claim it’s $1,000 per landing. Arbitrary figures will emerge from those with access, leading to capricious charges.”
Captain Iyayi, also a former NAMA MD, echoed similar concerns, stating that NAMA cannot introduce new charges without proper legislative approval. “NAMA should assess the impact on the industry before demanding such payments. We condemn situations where charges and taxes are introduced without due diligence or necessary assessment,” he said.
The implications extend beyond the aviation industry. Joe Nwakwue, former chairman of the Society of Petroleum Engineers Nigeria Council, warned that the new charges could significantly decrease oil production in a country already producing 500,000 barrels less per day than its capacity.
“The new fees will force oil and gas companies to reduce production further because helicopters are essential for many operations, and the increased cost may render some activities financially unsustainable. No oil service company would absorb this cost. It would eventually be passed on to project promoters and then to the end product. We are already dealing with a high-cost environment, so adding this makes operations more expensive and will definitely impact the bottom line. A business with medium to long-term investment plans may be forced to reduce investments when they observe inconsistencies in government policies.”
One of the most contentious aspects is the selection of Naebi Dynamic Concept Limited to exclusively collect the fees, raising questions about transparency and proper regulatory procedures.
