The Nigeria Civil Aviation Authority (NCAA) has directed Overland Airways to refund passengers who were incorrectly charged Value Added Tax (VAT) on flight tickets purchased before January 1, 2026.
In a statement issued on Saturday, February 28, the NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, said the issue had been resolved following regulatory engagement between the authority, the airline, and the Nigeria Revenue Service.
“As directed by the NCAA, the operator, Overland Airways, has reverted with clarification from the Nigeria Revenue Service,” Achimugu said.
The ICIR reports that the directive followed a clarification issued by the Nigeria Revenue Service regarding the implementation of the new tax regime for airline tickets.
Passengers had raised complaints with regulators after an elderly woman was reportedly compelled to pay the new tax in 2025, despite the policy being scheduled to take effect on January 1, 2026.
Travellers said the development came as a surprise and imposed additional financial strain, particularly during the busy December travel period.
Achimugu explained that passengers who purchased their tickets before the new tax laws took effect should not have been required to pay any additional charges.
“Tickets purchased before January 1, 2026, were not affected by the new tax laws,” he said, adding that passengers who bought tickets in 2025 but were later made to pay VAT at check-in in 2026 were not supposed to have been charged.
According to the NCAA, the airline initially applied the VAT requirement based on its understanding of the new fiscal policy, which led to complaints from affected travellers, noting that regulatory clarification was required to establish the proper application of the tax.
“The onus was on the NRS to clarify, which they have now done,” he said, noting that the aviation regulator had earlier communicated its position to the airline.
He added that, following the clarification, Overland Airways agreed to rectify the situation.
“The airline has committed to redressing the situation by initiating a refund for affected passengers,” Achimugu added.
Nanji is an investigative journalist with the ICIR. She has years of experience in reporting and broadcasting human angle stories, gender inequalities, minority stories, and human rights issues. She has documented sexual war crimes in armed conflict, sex for grades in Nigerian Universities, harmful traditional practices and human trafficking.