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The Nigeria Civil Aviation Authority (NCAA) has ordered Overland Airways to reimburse passengers who were improperly charged Value Added Tax (VAT) on tickets bought before January 1, 2026.
The directive followed a formal clarification from the Nigeria Revenue Service (NRS) regarding how the new VAT regime on airline tickets should be applied.
The issue came to light after travellers lodged complaints with regulators, including the case of an elderly woman who was reportedly compelled to pay VAT in 2025 for a ticket purchased ahead of the January 1, 2026 commencement date of the new tax policy.
In a statement released on Saturday, the NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, confirmed that the matter had been settled after discussions involving the airline and the tax authority.
“As directed by the NCAA, the operator, Overland Airways, has reverted with clarification from the Nigeria Revenue Service,” Achimugu said.
He stressed that tickets issued before the effective date of the tax should not have attracted 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.
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According to the regulator, Overland Airways had initially enforced the VAT based on its understanding of the revised fiscal guidelines, a move that triggered multiple complaints from affected passengers.
Achimugu explained that it became necessary to seek explicit guidance from the tax authority to resolve the confusion.
“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.
Following the clarification, the carrier agreed to make restitution.
“The airline has committed to redress the situation by initiating a refund for affected passengers,” Achimugu added.
The dispute emerged after several travellers reported being required to pay extra VAT charges at airport counters, despite having secured their tickets months before the tax policy took effect. Many described the unexpected payments as burdensome, particularly during the high-travel December season.
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