Nigeria’s oil production faces jeopardy as helicopter operators vow to halt operations over newly imposed landing charges. The Federal Government’s directive via the Ministry of Aviation demands compulsory payments, sparking a heated standoff.
Minister Festus Keyamo recently signed a memo instructing operators to pay landing fees to NAEBI Dynamic Concept Limited at all Nigerian aerodromes, helipads, and offshore platforms. Non-compliance could lead to sanctions, threatening daily oil output.
Helicopter operations are vital to Nigeria’s oil and gas sector, with 95% linked to these services. The threat of grounding operations could slash daily crude production from 1.3 million to just 300 barrels per day.
Operators vehemently oppose the Ministry’s move, aimed at boosting government revenue. They argue that existing aviation agencies already collect various fees, making additional charges unwarranted.
Captain Ado Sanusi of Aero Contractors, a pioneer in oil and gas helicopter services, denounces the new fees. He highlights that helipads used by operators belong to international oil companies, not the government.
“I don’t think it is a good thing to do because the International Civil Aviation Organisaton (ICAO) recommended that service providers in the aviation industry, which are government agencies, should engage in cost recovery, but unfortunately government has turned the agencies to profit making organisations in the aviation industry”, he said.
Operators emphasize that government agencies heavily regulate their operations and impose numerous fees. They fear additional charges will stifle industry growth, hampering efforts to expand Nigeria’s oil production.
“The assumption that helicopters are not regulated is incorrect. In fact, regulatory oversight of helicopter operations in Nigeria is comprehensive, similar to other aircraft operations. Three key parastatals—NAMA, NCAA, and the Federal Airports Authority of Nigeria (FAAN)—oversee helicopter operations and ensure financial compliance, contributing to our nation’s coffers.
Charge Controversy:
The controversy deepens as operators question the necessity of these charges, especially when the industry already faces supply chain challenges and equipment shortages.
“They also insisted that the payment should be done in dollars, but our currency is the naira. They call it a landing charge but when I land on the rig I should pay them. Then the Minister’s directive that everybody should give access to the company so that they monitor you, raises another question: what is that payment for?
“I see this act as sabotage against the Federal Government’s current drive to increase the volume of crude oil that is produced in the country. We are trying to ramp up operations and they are now bringing this. There are no spare parts and acquisition of equipment is very difficult now; yet, the government wants to increase the oil output. And I still wonder why they are not paying into the government account,” he said.
The looming standoff jeopardizes Nigeria’s ambitious oil production goals. Helicopter operators advocate for fair regulation, concerned that undue financial burdens could deter investment and compromise safety standards.
Amidst this turbulence, the industry braces for potential disruptions. The outcome of this clash between helicopter operators and government authorities will significantly impact Nigeria’s oil and gas landscape.
