NCAA Orders Overland Airways to Refund Passengers Over Wrongful VAT Charges

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 a clarification issued by the Nigeria Revenue Service (NRS) on the implementation of the new tax regime affecting airline tickets.

Passengers had lodged complaints with aviation regulators after reports emerged that an elderly woman and other travellers were compelled to pay VAT at airport counters, despite buying their tickets in 2025 before the new tax provisions were scheduled to take effect.

In a statement released on Saturday, the NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, said the issue had been resolved after regulatory engagement involving the airline and the revenue service.

According to Achimugu, tickets purchased before January 1, 2026, were not subject to the new VAT requirement and should not have attracted additional charges.

He explained that passengers who bought tickets in 2025 but were made to pay VAT at check-in in 2026 were wrongly charged, stressing that the tax law does not apply retroactively.

The NCAA disclosed that Overland Airways had initially implemented the VAT charge based on its interpretation of the new fiscal policy, which triggered complaints from affected travellers.

Achimugu said regulatory clarification became necessary to determine the proper application of the tax provisions, noting that the responsibility to clarify the policy rested with the Nigeria Revenue Service.

“The onus was on the NRS to clarify, which they have now done,” he stated, adding that the aviation regulator had earlier communicated its position to the airline pending the tax authority’s confirmation.

Following the clarification, Overland Airways agreed to reverse the charges and refund affected passengers.

“The airline has committed to redress the situation by initiating a refund for affected passengers,” Achimugu said.

The controversy had escalated during the December peak travel period, when several passengers described the additional VAT charges as unexpected and financially burdensome.

The NCAA maintained that regulatory oversight would continue to ensure strict compliance with clarified tax guidelines and to protect consumer rights within the aviation sector.