FG retains $300 helicopter levy, exempts offshore platforms from TNC

THE Federal Government has reinstated a $300 charge on helicopter landings for air navigation services but exempted private offshore oil and gas facilities from paying the Terminal Navigational Charge (TNC).

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed this in a circular dated August 28 and signed by its Chief Executive Officer, Ms xcOritsemeyiwa Eyesan.

The directive was issued to upstream petroleum operators, licensees, lessees and helicopter service providers following a government review of the controversial helicopter levy.

The review was ordered after industry stakeholders raised concerns about the introduction, structure and implementation of the charges.

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According to the NUPRC, the Minister of Aviation and Aerospace Development constituted a ministerial committee on March 9 to examine the levy and address concerns surrounding its application.

The committee included officials from the NUPRC, Ministry of Aviation and Aerospace Development, Office of the National Security Adviser, Nigerian Civil Aviation Authority (NCAA), Nigerian Airspace Management Agency (NAMA) and NAMA’s appointed collection consultant.

Following its assessment, the committee resolved that the $300 charge per helicopter landing should remain in place.

“The Levy of US$300 (Three Hundred United States Dollars) per landing is retained and remains payable to NAMA through its approved collection mechanism,” the commission said.

However, the NUPRC clarified that the TNC would only apply to helicopter landings at government-owned aerodromes.

It therefore ruled out the charge for helicopters landing at private offshore facilities and platforms operated by oil and gas companies.

“The Terminal Navigational Charge (‘TNC’) is payable only in respect of a landing at a government-owned aerodrome and does not apply to a landing at a private offshore facility or platform,” the commission stated.

The exemption applies specifically to upstream petroleum operations. The TNC will continue to apply to helicopter activities outside the upstream sector, including medical evacuation, private charter and agricultural operations.

The NUPRC also directed that the $300 levy be treated as a statutory air navigation charge for cost-reporting purposes.

It said further guidance would be issued on the applicable classification and reporting requirements, including how costs previously booked as TNC for upstream helicopter operations should be treated.

As part of the new framework, NAMA is expected to deploy low-altitude flight monitoring and surveillance systems to strengthen airspace management and national security.

Operators will also be required to provide flight manifests, movement logs and offshore activity information, with NAMA expected to communicate the specific reporting requirements.

The NUPRC further warned against the introduction of additional charges affecting upstream petroleum operations without consultation with the regulator and other relevant stakeholders.

“No new or revised fee, levy or charge having a direct impact on upstream petroleum operations should be introduced without prior consultation with the Commission and other relevant stakeholders,” it said.

The commission said the requirement was consistent with Section 25 of the Petroleum Industry Act 2021.

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It subsequently directed upstream operators, licensees, lessees and their helicopter contractors to adjust their contracts, invoices and cost-recovery arrangements in line with the committee’s decisions.

The latest decision follows previous attempts to suspend the controversial levy.

The Federal Government suspended enforcement of helicopter landing fees for two months on March 10, while the Ministry of Aviation and Aerospace Development had also announced a temporary suspension in May 2024 following objections from industry stakeholders.

The levy was subsequently brought back later in 2024, although the reintroduction was not publicly announced at the time.