Nigerian Civil Aviation Authority (NCAA) has directed Overland Airways to refund Value Added Tax (VAT) wrongly charged to passengers on flight tickets purchased in 2025.
NCAA
The directive follows a social media complaint that highlighted the airline’s application of new tax policies to older bookings, prompting NCAA intervention.
Michael Achimugu, NCAA Director of Public Affairs and Consumer Protection, confirmed Friday that Overland Airways agreed to process refunds after receiving clarification from the Nigeria Revenue Service (NRS).
The issue emerged in late January 2026 when a passenger alleged on X (formerly Twitter) that her grandmother faced an extra N11,286 VAT charge at the airport for a 2025 ticket. On January 28, NCAA summoned the airline to justify the additional payments for pre-2026 tickets.
The regulator sought NRS guidance on retroactive VAT application. NRS ruled that updated VAT rules, effective January 1, 2026, exclude tickets issued before that date.
Achimugu updated on X: “This means passengers who paid VAT at check-in in 2026 for 2025 tickets were not supposed to be charged.”
Overland Airways accepted the clarification and pledged refunds, earning NCAA commendation for cooperation. Achimugu noted the airline initially viewed charges as valid under the new framework, but NRS interpretation prevailed.
“The issue has reached a satisfactory conclusion,” he stated, reaffirming NCAA’s commitment to passenger rights and fair policy enforcement.
Affected passengers who paid extra VAT on 2025-issued Overland tickets qualify for full refunds.
