On May 28, 2025, the Federal Government of Nigeria announced the reinstatement of a $300 offshore helicopter landing levy, with the payment responsibility now transferred from helicopter operators to oil companies. Aviation and Aerospace Development Minister Festus Keyamo disclosed this during an Arise TV interview, detailing the resolution of a year-long dispute that led to the levy’s temporary suspension in June 2024.
The levy, initially introduced under the previous administration, applies to helicopters landing at offshore helipads, aerodromes, floating production storage and offloading (FPSO) units, floating storage and offloading (FSO) units, and oil platforms. It aims to fund operations of agencies like the Nigerian Airspace Management Agency (NAMA), aligning with global practices. Keyamo noted that helicopter operators had protested the fee’s fairness, particularly as it was collected by a private firm, Messrs NAEBI Dynamic Concept Limited, prompting its suspension after initial authorization in April 2024.
Following extensive dialogue, a committee comprising ministry officials, airline and helicopter operators, and International Oil Companies (IOCs) reviewed the levy and deemed it consistent with international standards. Helicopter operators agreed to its reinstatement but argued that absorbing the cost would force them to raise charter fees, ultimately impacting oil companies leasing their services. “The operators insisted the oil companies should pay, as they lease the helicopters. Increasing charter fees would pass the cost to them anyway,” Keyamo explained, confirming that a signed agreement supports this arrangement.
However, oil companies have raised objections to bearing the levy, leading Keyamo to establish another committee to address their concerns. The minister emphasized that the levy is government revenue, not private profit, and is critical for maintaining aviation infrastructure. At the current exchange rate of N1,579/$1 as of May 28, 2025, the $300 levy equates to approximately N473,700 per landing, a significant cost for oil companies operating multiple helicopter trips.
The decision reflects Nigeria’s efforts to balance aviation sector funding with industry dynamics, ensuring operational sustainability while addressing stakeholder concerns. The outcome of ongoing discussions with oil companies will determine the levy’s long-term implementation, with potential implications for operational costs in Nigeria’s oil and gas sector.
