The Nigeria Civil Aviation Authority (NCAA) 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 on the implementation of the new tax regime affecting airline tickets.
Passengers had complained to the regulators after an elderly woman was forced to pay the new tax in 2025, a fee that was expected to take effect on January 1, 2026.
The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, in a statement on Saturday, disclosed that the matter had been resolved after regulatory engagement with 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.
He clarified that passengers who bought tickets before the new tax laws came into force should never have been subjected to 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 had initially implemented the VAT requirement based on its interpretation of the new fiscal policy, prompting complaints from affected travellers.
Achimugu explained that regulatory clarification became necessary to determine the correct 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.
Following the clarification, Overland Airways agreed to correct the situation.
“The airline has committed to redress the situation by initiating a refund for affected passengers,” Achimugu added.
The controversy arose after several passengers complained that they were compelled to pay additional VAT charges at airport counters despite purchasing their tickets months before the tax provisions took effect.
Travellers described the development as unexpected and financially burdensome, especially during peak travel periods in December.
The PUNCH