The Nigerian Civil Aviation Authority (NCAA) has summoned Overland Airways in light of complaints over alleged Value Added Tax (VAT) charges levied on airline tickets bought in 2025 for flights scheduled in 2026.
The move was prompted by a public grievance voiced by Oluwa Kemmy Bello, who highlighted the case of her 86-year-old grandmother, who allegedly had to pay an extra ₦11,286 in VAT at Ilorin Airport for her flight with Overland Airways.
On January 21, Bello took to X to address the issue, inquiring if her grandmother, who purchased the ticket the previous year, should be subject to additional VAT. Her public message was directed to the NCAA and a tax authority official: “Dear @mikeachimugu01, kindly assist clarify if a ticket purchased since last year 2025 attracts additional VAT? My 86-year-old grandma was forcibly made to pay ₦11,286 as new VAT today at Ilorin Airport by OverlandAirways.”
In a communiqué issued on Wednesday, NCAA's Director of Public Affairs and Consumer Protection, Michael Achimugu, confirmed that the agency invited Overland Airways to clarify the charges during a meeting held on Tuesday.
Achimugu shared that the NCAA team included officials from various departments such as Consumer Protection, Air Transport Regulations, Policy and Enforcement Units, and legal advisors. During the meeting, Overland Airways contended that aviation taxes are applied based on the flight date, not upon ticket purchase, arguing they have an agreement with the tax authorities regarding these charges.
Nevertheless, Achimugu stated that any past arrangements could not supersede current regulations unless validated by the relevant tax authority.
He elaborated, “The NCAA’s stance is that any such commitments between the airline and other parties are rendered obsolete by new developments, unless otherwise indicated by the Nigeria Revenue Service.”
Furthermore, the Director of Air Transport Regulations had previously confirmed through tax policy expert Taiwo Oyedele that VAT should not be applicable to tickets purchased prior to 2026 but noted that further clarification from the Nigeria Revenue Service (NRS) remains necessary.
Achimugu continued by mentioning that Overland Airways must seek formal clarification from the tax authority within ten days and provide a response to the NCAA.
He also indicated that the airline has been instructed to arrange refunds for affected passengers if the NRS affirms that retrospective VAT charges do not apply for tickets acquired before 2026, adding, “The airline has agreed to refund all passengers affected by this situation if the NRS clarifies otherwise.”
This development is unfolding amidst increasing public concern regarding rising costs in the aviation sector and the imperative for better consumer protection within Nigeria’s domestic airline industry.
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