NCAA orders Overland Airways to refund pre-2026 VAT charges

The Nigeria Civil Aviation Authority (NCAA) has directed Overland Airways to refund passengers who were charged Value Added Tax (VAT) on tickets purchased before January 1, 2026.

The regulator’s Director of Public Affairs and Consumer Protection, Michael Achimugu, disclosed on Friday that clarification had been obtained from the Nigeria Revenue Service (NRS) regarding the implementation of the new tax laws.

According to Achimugu, tickets bought before January 1, 2026, are not affected by the revised tax regime. He explained that passengers who purchased tickets in 2025 but were asked to pay VAT at check-in in 2026 should not have been charged.

He noted that Overland Airways initially applied VAT based on its interpretation of the new tax provisions, prompting the need for official clarification from the revenue authority.

“The responsibility was on the NRS to provide clarification, which has now been done,” he said, adding that the NCAA had earlier stated its regulatory position on the matter.

Following the clarification, Overland Airways has pledged to refund all affected passengers. Achimugu described the resolution as satisfactory and reaffirmed the NCAA’s commitment to protecting consumer rights and ensuring strict compliance with aviation and fiscal regulations.

The directive comes after complaints from passengers who were compelled to pay additional VAT charges despite purchasing their tickets before the new tax rules came into effect.