The Nigeria Civil Aviation Authority has directed Overland Airways to refund passengers who were wrongly charged Value Added Tax (VAT) on flight tickets purchased before January 1, 2026.
The directive followed clarification issued by the Nigeria Revenue Service regarding the implementation of the new tax regime affecting airline tickets.
Passengers had lodged complaints after reports emerged that some travellers, including an elderly woman, were compelled to pay VAT at airport counters in 2026 despite purchasing their tickets in 2025—before the new tax provisions took effect.
The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, confirmed in a statement that the issue had been resolved following regulatory engagement with the airline and the tax authorities.
According to Achimugu, tickets purchased before January 1, 2026, were not subject to the new VAT rules and should not have attracted additional charges at check-in.
He explained that regulatory clarification became necessary after the airline implemented the VAT requirement based on its interpretation of the new fiscal policy.
Following the clarification from the Nigeria Revenue Service, Overland Airways agreed to correct the situation and initiate refunds for affected passengers.
The controversy had sparked concerns among travellers, particularly during the December peak travel period, as many described the additional VAT charges as unexpected and financially burdensome.
The NCAA’s intervention reinforces its consumer protection mandate and underscores the importance of proper regulatory guidance in implementing fiscal policy changes within Nigeria’s aviation sector.
