The Nigeria Civil Aviation Authority (NCAA) has ordered Overland Airways to refund passengers who were wrongly charged Value Added Tax (VAT) on flight tickets purchased before January 1, 2026.
The directive follows clarification from the Nigeria Revenue Service regarding the implementation of the new tax regime on airline tickets.
The issue came to light after passengers raised complaints, including a case where an elderly woman was asked to pay the VAT in 2025, a fee only meant to take effect in 2026.
Michael Achimugu, Director of Public Affairs and Consumer Protection at the NCAA, said in a statement on Saturday that the matter had been resolved after regulatory engagement with both the airline and the NRS.
“As directed by the NCAA, Overland Airways has provided clarification from the Nigeria Revenue Service,” Achimugu said.
He confirmed that passengers who purchased tickets before the new tax laws came into force should never have been charged the VAT. “Tickets purchased before January 1, 2026 were not affected by the new tax laws. Those who bought tickets in 2025 but were charged VAT at check-in in 2026 were wrongly billed,” he added.
According to the NCAA, the airline had initially applied the VAT based on its interpretation of the fiscal policy, which prompted complaints from affected travellers.
Achimugu said the regulatory clarification was necessary to ensure correct application of the tax. “It was the responsibility of the NRS to provide clarity, which they have now done,” he noted, adding that the aviation regulator had previously communicated its position to the airline.
Following the clarification, Overland Airways committed to refunding passengers who were incorrectly charged. “The airline has agreed to redress the situation by initiating refunds for all affected passengers,” Achimugu confirmed.
The controversy emerged after several travellers reported being compelled to pay additional VAT at airport counters, despite having purchased tickets months before the tax provisions took effect. Many described the charges as unexpected and financially burdensome, particularly during the busy December travel season.
