The Nigeria Civil Aviation Authority (NCAA) has instructed Overland Airways to refund passengers who were incorrectly charged Value Added Tax (VAT) on flight tickets purchased before January 1, 2026.
The directive followed clarification from the Nigeria Revenue Service (NRS) regarding how the newly introduced tax regime on airline tickets should be applied.
The issue came to public attention after complaints emerged from travellers who said they were required to pay additional VAT charges at airport counters, despite having bought their tickets months earlier. One case that drew particular concern involved an elderly passenger who reportedly paid the tax in 2025, even though the revised VAT policy was scheduled to begin on January 1, 2026.
In a statement released on Saturday, the Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, confirmed that the matter had been addressed after discussions between the aviation regulator, the airline, and the tax authorities.
Achimugu explained that tickets purchased before the effective date of the new tax policy should not have attracted any additional VAT charges. According to him, passengers who secured their bookings in 2025 but travelled in 2026 were not liable to pay the newly introduced tax at check-in.
He stated that the airline had initially enforced the VAT charge based on its understanding of the new fiscal guidelines, which led to confusion and complaints from affected customers.
The regulator subsequently sought formal clarification from the Nigeria Revenue Service to ensure proper interpretation and implementation of the policy. Following that clarification, Overland Airways agreed to take corrective action.
The NCAA confirmed that the airline has undertaken to begin processing refunds for all passengers who were wrongly charged.
The controversy sparked frustration among travellers, particularly those travelling during the busy December holiday period, who described the unexpected payments as inconvenient and financially stressful.
Regulators say the resolution is intended to ensure consumer protection and prevent similar misunderstandings in the future.
