The Nigerian Civil Aviation Authority (NCAA) has directed Overland Airways to refund passengers who were wrongly charged Value Added Tax (VAT) on flight tickets purchased in 2025.
The order followed a complaint on social media which drew attention to the issue, prompting a review of how the airline applied new tax policies to older bookings.
Michael Achimugu, the NCAA’s director of Public Affairs and Consumer Protection, confirmed on Friday that the airline has agreed to begin refunding affected passengers after receiving clarification from the tax authorities.
Dispute Over VAT on Pre-2026 Tickets
The controversy began in late January 2026 when a passenger alleged on X that her grandmother was asked to pay an additional N11,286 as VAT at the airport for a ticket that had already been bought in 2025.
On January 28, the NCAA summoned the airline to explain why passengers with pre-2026 tickets were being asked to make extra payments at check-in.
The regulator requested that the airline obtain a formal position from the Nigeria Revenue Service (NRS) on whether the new VAT policy could be applied retroactively.
Tax Authority Clarifies Position
Following consultations, the NRS clarified that the updated VAT rules, which took effect on January 1, 2026, do not apply to tickets issued before that date.
Providing an update on X, Achimugu said the tax authority decided that tickets purchased before January 1, 2026, should not attract VAT under the new regime.
“This means that passengers who were made to pay VAT before check-in in 2026 for tickets purchased since 2025 were not supposed to have been charged,” he said.
He added that the airline had accepted the clarification and committed to refunds.
“Overland Airways, a responsible and law-abiding entity, has committed to redressing the situation by initiating refunds for affected passengers,” Achimugu stated.
Refunds to Affected Passengers
The NCAA said the matter has now been resolved and commended the airline for cooperating with the investigation once the tax authority issued its clarification.
According to Achimugu, while the airline initially believed the charges were justified under the new tax framework, the final interpretation rested with the revenue service.
“The onus was on the NRS to clarify, which they have now done. I was also clear about the position of the NCAA. This issue has now been brought to a satisfactory conclusion,” he said.
The regulator reaffirmed its focus on protecting passenger rights and ensuring that policy changes do not lead to unfair financial burdens on travellers.
Passengers who travelled with Overland Airways using 2025-issued tickets and were charged additional VAT at the airport are now entitled to a full refund of the extra amount paid.
