The Nigeria Civil Aviation Authority (NCAA) has directed Overland Airways to refund passengers who were wrongly charged Value Added Tax (VAT) on tickets purchased before January 1, 2026.
The directive follows clarification from the Nigeria Revenue Service (NRS) on the implementation of the new tax regime for airline tickets.
Passengers had raised complaints after an elderly woman was forced to pay the new VAT in 2025, despite the fee taking effect only from January 1, 2026.
In a statement on Saturday, NCAA Director of Public Affairs and Consumer Protection, Michael Achimugu, confirmed the matter was resolved after regulatory engagement with the airline and NRS.
“As directed by the NCAA, the operator, Overland Airways, has reverted with clarification from the Nigeria Revenue Service,” Achimugu said.
He clarified that tickets bought before January 1, 2026, were not subject to the new tax laws.
“Tickets purchased before January 1, 2026 were not affected by the new tax laws,” he stated, adding that passengers who bought tickets in 2025 but were later charged VAT at check-in in 2026 should not have been subjected to the additional fee.
Achimugu explained that the airline initially applied the VAT based on its interpretation of the new fiscal policy, prompting the complaints.
Regulatory clarification was required to determine the correct application of the tax.
“The onus was on the NRS to clarify, which they have now done,” he said, noting that the NCAA had earlier communicated its position to the airline.
Following the clarification, Overland Airways agreed to correct the situation.
“The airline has committed to redress the situation by initiating a refund for affected passengers,” Achimugu added.
The issue arose when several passengers were compelled to pay extra VAT at airport counters despite purchasing tickets months earlier, describing the charges as unexpected and burdensome, especially during peak travel periods in December.
