Regulator steps in after travellers were made to pay new tax on tickets bought before January 2026 implementation date….
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 the new tax regime took effect.
The directive followed complaints from affected travellers and subsequent clarification issued by the Nigeria Revenue Service (NRS) regarding the proper implementation timeline for the revised VAT policy on airline tickets.
At the centre of the controversy was an incident involving an elderly passenger who was reportedly compelled to pay VAT in 2025 on a ticket that should not have attracted the charge until January 1, 2026 — the official commencement date of the new tax provisions.
Regulator Steps In
In a statement released on Saturday, the NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, confirmed that the issue had been resolved following engagement between the regulator, the airline and the tax authority.
“As directed by the NCAA, the operator, Overland Airways, has reverted with clarification from the Nigeria Revenue Service,” Achimugu said.
He explained that tickets purchased before January 1, 2026 were not subject to the revised VAT rules and should not have attracted additional charges at check-in.
Passengers who bought tickets in 2025 but were later asked to pay VAT when travelling in 2026 were therefore wrongly charged, he added.
Misinterpretation of Policy
According to the regulator, the airline had initially enforced the VAT requirement based on its interpretation of the new fiscal policy, triggering confusion and frustration among travellers.
Achimugu noted that regulatory clarification was necessary to establish the correct application of the law.
“The onus was on the NRS to clarify, which they have now done,” he said, pointing out that the NCAA had earlier communicated its position to the airline before the final clarification was issued.
Refunds to Begin
Following the clarification, Overland Airways agreed to take corrective action.
“The airline has committed to redress the situation by initiating a refund for affected passengers,” Achimugu stated.
The episode sparked public concern after multiple travellers reported being compelled to make unexpected VAT payments at airport counters, despite having purchased their tickets months before the tax provisions were due to come into force.
Many described the additional charges as financially burdensome, particularly during the busy December travel season.
With the matter now resolved, the NCAA says the directive reinforces its commitment to consumer protection and regulatory oversight in Nigeria’s aviation sector.
About the Author
