NCAA directs airline to refund passengers over 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 1 January.

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

“As directed by the NCAA, the operator, Overland Airways, has reverted with clarification from the Nigeria Revenue Service,” Mr Achimugu said.

He explained that “tickets purchased before January 1, 2026 were not affected by the new tax laws,” adding that passengers who bought tickets in 2025 but were later made to pay VAT at check-in in 2026 “were not supposed to have been charged.”

Mr Achimugu noted that the airline had initially applied VAT based on its understanding of the new tax regime and that the matter required clarification from the revenue authority.

“The onus was on the NRS to clarify, which they have now done,” he said, adding that the NCAA had earlier made its regulatory position known.

According to him, Overland Airways has “committed to redress the situation by initiating a refund for affected passengers.”

He added that the issue “has now been brought to a satisfactory conclusion,” stressing that the NCAA remains committed to protecting the rights of passengers and ensuring compliance with aviation and fiscal regulations.

The development follows complaints from passengers who were required to pay additional charges despite having purchased their tickets before the new tax provisions took effect.

NCAA reiterated its commitment to safeguarding consumer rights and ensuring that operators comply strictly with applicable regulatory and fiscal directives.