NCAA Orders Overland Airways to Refund Passengers for VAT Charges

The Nigeria Civil Aviation Authority (NCAA) has mandated Overland Airways to return money to passengers who incurred Value Added Tax (VAT) on tickets purchased prior to January 1.

This announcement was made on Friday by Michael Achimugu, the director of Public Affairs and Consumer Protection at the NCAA, who emphasized that the Nigeria Revenue Service (NRS) had clarified the application of the new tax rules.

"Following NCAA's directives, Overland Airways has received confirmation from the Nigeria Revenue Service," Mr. Achimugu stated.

He noted that tickets issued before January 1, 2026, were exempt from the new tax directives, informing that any passengers who bought their tickets in 2025 but were asked to pay VAT during check-in in 2026 should have been exempt from this charge.

Mr. Achimugu explained further that the airline initially imposed VAT based on its interpretation of the new tax system, necessitating clarification from the revenue agency.

"It was crucial for the NRS to provide clarity, which they have now achieved," he added, reiterating that the NCAA had previously communicated its regulatory stance.

He pointed out that Overland Airways committed to resolve the issue by processing refunds for those passengers affected.

This development follows numerous complaints from travelers who faced additional charges despite having purchased tickets before the tax changes were implemented. The NCAA reasserted its commitment to uphold consumer rights and ensure adherence to both aviation and fiscal regulations.