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$300 Levy - Operators Fail to Comply After 7-Day Ultimatum
The Nigerian Airspace Management Agency (NAMA) is said to be in a fix over the failure of helicopter operators and oil firms to comply with the $300 helicopter landing levy imposed by the federal government, Daily Trust can report.
This is despite the recent 7-day ultimatum issued to the operators by the airspace management agency while threatening to refuse start-ups for operators in the oil rigs.
Daily Trust reports that the helicopter landing levy is imposed on helicopter landing at oil rigs and platforms through a consultant, NAEBI Dynamic Concept.
The federal government in the last administration through the Ministry of Aviation and Aerospace Development, introduced the levy which airline operators including oil companies kicked against.
A memo emanating from the ministry had last year directed helicopter operators to compulsorily pay the helicopter landing fees at all Nigerian aerodromes, helipads, airstrips, floating production storage and offloading (FPSO) units, floating storage and offloading (FSO) units and other oil platforms.
However, the present Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, announced the temporary suspension of the levy in May, 2024.
He said further actions on the matter would be taken after a review committee submits its report for scrutiny.
However, exactly one year later, the federal government lifted the suspension, according to a recent circular signed by Akut D.S., General Manager, Air Traffic Control Operations, the Nigerian Airspace Development Agency (NAMA).
7-day ultimatum
But on Tuesday June 24, NAMA published an advertorial, giving the affected operators seven days to comply.
In the notice titled, "Enforcement of Helicopter Landing Levies for Air Navigation Services in Oil Fields, Terminals, Rigs, Floating Production Storage and Offloading (FPSO) Units, Helipads, Airstrips, and Aerodromes," NAMA stressed the need for full compliance with the provision of the NAMA on the prompt payment of helicopter landing levies for air navigation services rendered by the Agency within the Nigerian airspace and cover operations at Oil Fields Terminals, Platforms, Rigs, Floating Production Storage and Offloading (FPSO) units, Helipads, Airstrips, and Aerodromes
It explained that since 2022, the agency, in partnership with Naebi Dynamic Concepts Limited, has consistently issued multiple written communications to engage oil and gas operators on the statutory provisions of the NAMA Act.
According to the agency, "these proactive efforts have not yielded the desired compliance, due to the influence of certain individuals who have worked with them against adherence to established regulatory requirements."
The statement said, "It is important to emphasize that the enforcement of helicopter landing levies aligns with Global Best Practices and is currently implemented across International Civil Aviation Organization (ICAO) member states in Europe, Asia, and the Americas.
"These levies are essential to sustaining the maintenance, upgrading, and acquisition of modern air navigation infrastructure, critical for the safe and efficient management of Nigeria's airspace, particularly given the growing operations of drones, helicopters, and fixed-wing aircraft."
NAMA explained that the agency may decide to shut down and relocate facilities used for unauthorised navigational operations within the Nigerian airspace in line with Section 8(3) of the Act.
"As responsible and law-abiding international corporate entities, the Nigerian Airspace Management Agency (NAMA) hereby calls on all affected oil companies to, within seven (7) days from the date of this publication, formally communicate to Naebi Dynamic Concepts Ltd their proposed payment plans and modalities for applicable air navigation levies," it said.
Compliance zero despite ultimatum
Daily Trust learnt that despite the ultimatum which elapsed two weeks ago, the affected operators have remained adamant refusing to pay the $300 levy.
They insisted that the levy has no legal and regulatory backing anywhere and as such they would not be paying the levy.
One of the operators who spoke with Daily Trust yesterday in confidence stated that they are yet to be convinced as to the necessity and legality of the levy.
"Already we pay all the statutory charges as stipulated by law. Why the $300 levy again," one of them asked.
Checks yesterday indicated that NAMA is in a fix over the next move after the operators refused to comply.
A source in NAMA said, "They are being defiant. They don't want to pay and you know the industry is divided. Apart from the ultimatum we gave them, there has not been any other thing."
The source said NAMA plans to restrict giving start-up for the affected operators but observed that most of the helicopters take off and land from oil rigs and FPSOs.
"NAMA is yet to take a final action. From what I learnt they will contact all the operators and the Minister is fully in charge," the source added.
Why government should withdraw levy - Sanusi
Managing Director and Chief Executive Officer of Aero Contractors, Captain Ado Sanusi, called on the federal government to withdraw the payment of $300 landing fees by helicopter companies providing shuttle services to oil and gas operators in Nigeria.
"Well, you know my stand has always been very clear on this. That $300 fee is not part of ICAO (International Civil Aviation Organisation) charges for cost recovery because you must invest; then you can now recover the cost. And the investment you are going to make must provide some value to the customer. Let's say I am investing in radios or I am investing in navigational aids; I will tell the customers I am investing in this and over a period of five years, I want to recoup my investment. But in this one there is no investment. If they say there is an investment or the company says there is an investment, they should bring it out and let Nigerians see the investment they have made in either surveillance or in navigation or in communication. But you have not invested anything and you just put a levy, and you are not a government organisation to say that you want to tax people."
Also speaking, Roland Iyayi, a trustee of Airline Operators of Nigeria (AON), stated that before the new fee was introduced, the helicopter companies have been paying all their taxes in accordance to industry regulations, insisting that the additional $300 landing fee is a burden on the operators which may undermine the industry.
"When this matter came up during Hadi's time (former Minister of Aviation, Hadi Sirika), we shut it down because we felt the industry was overtaxed. Introducing something like this, we felt, was even going to be inimical to the growth of the industry. Again, if you ask all these individuals who are justifying the collection, they always say to you that the money is going to the government, but the money is leaving the aviation sector.
"In aviation, the money earned in aviation is meant to be used to develop aviation. But in Nigeria the money is used for other purposes and not ploughed back to develop the industry.
With the new tax laws, the money earned will go to Nigerian Revenue Service (NRS) before it is now redistributed. Definitely things will get worse in the industry."
What next for NAMA?
When contacted yesterday, NAMA Director of Public Affairs and Consumer Protection, Alhaji Musa Abdullahi promised to get back to our correspondent on the next line of action.
It was however learnt that the federal government plans to further engage with the operators on the need to comply.
It was after the engagement that the agency would take action on the refusal by the operators to comply with the levy.
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