Towards Effective Collection of Helicopter Landing Levy- NAEBI Dynamic Concepts Limited

A low-flying helicopter requiring special navigation equipment to capture for, accurate data, and revenue

INTRO:

The Government’s desire to boost revenue generation in the aviation, maritime, oil and gas, logistics and allied value-chain is birthing a partnership with private sector players.

The exclusive rights granted to an indigenous firm – NAEBI Dynamic Concepts Limited for the collection of helicopter landing levy at all aerodromes, helipads, oil rig platforms and other facilities in the country, is expected to trigger a paradigm shift. Granting access to the company’s officials by stakeholders/players in the respective facilities will guarantee full compliance and optimize the expected gains.

The Federal Government is sparing no efforts at enhancing the collection of revenue for sustained economic growth and development from identified value chains. Significantly, this move will help develop the non-oil sectors of the economy, which are less clobbered by external volatility.

Towards this end, the government is thinking out of the box as it exploits possible collaboration with private sector players to boost its collection of levies/charges from the operations of helicopters operating in the country. These helicopters utilize landing and other facilities at aerodromes, helipads airstrips, production storage and offloading (FPSO) units, floating storage and offloading (FSO) units, and oil rig platforms.

Given that helicopters’ in question are critical to the operations of the LOCs, landing levies fall within the realm of legitimate operational costs that can be borne by these LOCs without additional burden to the Nigerian government or the tax-payers. Furthermore, this fee is aligned with international best practices, bringing Nigeria in line with global standards in aviation.

There are over 250 such facilities across the country. To tap into the opportunity, the Federal Government in the last administration granted the exclusive right to an indigenous firm: NAEBI Dynamics Concepts Limited for the collection of helicopter landing levy at all aerodromes, helipads, airstrips, FSPOs, FSOs, oil rigs platforms in Nigeria. That approval was reaffirmed by this administration.

The exclusive right was conveyed by the Federal Government in a letter signed by the Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, dated Thursday, April 25, 2024. Titled:” To All Operators and Stakeholders of Civil Helicopter Operations in Nigeria”. Keyamo urged operators and stakeholders to fully comply with the mandate by granting total access to Messrs. NAEBI Dynamics Concepts Limited, for the collection of the levy effective immediately. The non compliance with the directive, Keyamo said, will constitute a breach of the mandate and will be met with appropriate sanctions.

The minister said:” The Ministry of Aviation and Aerospace Development will enforce compliance without exception and will pursue all available remedies against any party that fails to adhere to this directive. “Please note that the Ministry of Aviation will be monitoring compliance with the mandate closely and will take swift action against any violation.”

Speaking on the matter, Keyamo said in the past, millions of dollars had been lost due to poor regulation of the collection process. The minister said the company, NAEBI Dynamic Concepts Limited, got the current administration’s nod because it had already been considered by the immediate past administration, for the job and was already doing a good job.

Keyamo said: “I inherited the process from my predecessor. It is a good deal; so, I had to grant them the rights because before now, the nation had lost millions of dollars.

“Nigerians believe that helicopters have been flying and landing all over this country without paying anything; they were not effectively monitored.
.“Government is a continuum, and if you see a good idea, you accept it. It is not everything I will cancel.
“So, there was no reason to suspend it because the company said they would help us to collect fees from the helicopters through a PPP arrangement.

“The company will put the infrastructure in place, employ personnel and remit to the Federal Government. So, everything will be going to the Federation Account and the company will get their cut.”
Speaking on efforts to scale up its operations, NAEBI Dynamics Concepts Limited a few months ago acquired additional equipment to enhance its service delivery.

The Company acquired Mobile radar, Tracking Devices, Body-worn Cameras, and fully equipped Control Room amongst other support that will capture and relay data for Helicopters flying in and out of Nigeria.
Mr. Chike Stanley, Managing Director/Chief Executive Officer of NAEBI Dynamic Concepts Limited stated that the move to re-fleet its equipment profile is part of the Company’s strategy to ensure it achieves its objectives on job creation and fulfilling its mandate of generating revenue for the Federal Government of Nigeria.

Speaking on the development, an official of the Equipment Company in the United Kingdom – Tensor, Mr. Martin Head, stated that its company is working with Messrs. NAEBI Dynamic Concepts Limited and the Federal Ministry of Aviation & Aerospace Development to achieve the tracking of Helicopters in and out of Nigeria from the Control Room. He confirmed the reliability of the Equipment describing them as very robust and innovative with a unique software which would aid comprehensive and accurate investigation for the Company’s operations.

Speaking more on the efforts to consolidate its service delivery, Mr Stanley said NAEBI Dynamic Concepts Limited will be acquiring a Mobile Radar to help cover low-level flights from 5000 feet above the sea level with high density cameras and other technological devices to be deployed to the areas.

According to him, the thrust is to contribute in increasing the nation’s Gross Domestic Product through the Ministry of Aviation; creating jobs, and reduce security risks and youth restiveness especially in the Niger Delta Region. The NAEBI Chief Executive further revealed that the project scope would assist the Government in collating data on the day-to-day movements of helicopters in Nigeria.

He emphasized that the Company’s operation is playing a huge role in reducing the unemployment rate and lauded the Federal Government for supporting the NAEBI Dynamic Concepts Limited project. He also thanked representatives of the Ministry of Aviation and Aerospace Development, who were part of the entourage to the United Kingdom to obtain first-hand information on the project and process.

During the meeting, Mr. Christopher Omoaghe, the Special Advisor to the Minister on Special Projects and Duties, spoke on behalf of the Ministry of Aviation & Aerospace Development highlighting the challenges faced by the Ministry, including the provision of incorrect schedules and data, as well as the submission of falsified amounts by operators attempting to bypass the system. Also in the entourage were the Director of Corporate Services, Federal Airports Authority of Nigeria, and the Deputy Director Air transport, Federal ministry of Aviation and Aerospace Development.

Mr. Stanley applauded the team from the Federal Ministry of Aviation & Aerospace Development, for their involvement in the project, assuring them of the company’s capacity to deliver on the set timelines. He said, “Work has commenced and the current delay is on easy access and compliance. “We intend to train another batch of Helicopter Monitoring Officers (HMOs) in Aviation Security (AVSEC) basic 1, 2, 3, Nigeria College of Aviation Technology (NCAT) and International Civil Aviation Organization (ICAO) courses by the first quarter of 2024, as well as deploy needed equipment that will enhance efficient navigational services.

“We believe in the overall success of this initiative and will continue to do all we can while upholding International standard practice in fulfilling our mandate. This is in furtherance of our aim to forestall loss of revenue. To this end, we began by consulting with stakeholders in the industry, including the Helicopter Operators, Nigeria Airspace Management Agency (NAMA), Airspace Managers, Air Traffic Controllers, Executive Governors in the Niger Delta Region and the International Oil Companies (ILOs)/Local Oil Companies (LOCs) “

“He stated: “We have left nothing to chance in developing this value chain with a series of strategic activities. We have also continued to engage State Government in the Niger Delta Region, having provided and commissioned operational vehicles and a call center in Port Harcourt International Airport, General Aviation Terminal Building. In the last three years, we have sustained our operations adding value to the industry with the mandate given us by the Government. We have successfully sensitized the stakeholders and public on the project”.

He thanked the Minister of Aviation & Aerospace Development for being forthright and showing the will to reposition the aviation sector to meet with international standards and practice. He praised him for tackling the bureaucracy in the system to fast-track development. He also expressed the optimism that the company will do more despite the challenges it is facing.