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, following the resolution of a dispute over the implementation of the new tax regime.
The directive came after clarification from the Nigeria Revenue Service on the proper application of the VAT policy affecting airline tickets.
Passengers had lodged complaints with the regulator after reports emerged that some travellers, including an elderly woman, were compelled to pay the new VAT at airport counters in 2025, despite having purchased their tickets months earlier.
The tax provision was scheduled to take effect on January 1, 2026.
In a statement issued on Saturday, Michael Achimugu, Director of Public Affairs and Consumer Protection at the NCAA, said 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 tickets purchased before January 1, 2026, were not subject to the new VAT regime, stressing that passengers who bought tickets in 2025 but were later asked to pay VAT at check-in in 2026 should not have been charged.
According to the NCAA, the airline had initially implemented the VAT requirement based on its interpretation of the new fiscal policy, a move that triggered complaints from affected travellers.
“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,” he said
Achimugu noted that regulatory clarification became necessary to ensure the correct application of the tax, adding that the aviation authority had earlier communicated its position to the airline.
“The onus was on the NRS to clarify, which they have now done,” he said.
Following the clarification, Overland Airways has agreed to initiate refunds for all affected passengers. The NCAA said the airline had committed to redressing the situation promptly.
The controversy had sparked concerns among travellers, particularly during the peak December travel period, with many describing the additional charges as unexpected and financially burdensome.
