Overland Airways To Refund Passengers Wrongly Charged VAT On 2025 Tickets

Passengers who were asked to pay Value Added Tax (VAT) on Overland Airways tickets purchased in 2025 will now receive refunds after intervention by the Nigeria Civil Aviation Authority (NCAA).

The Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, confirmed that the airline has agreed to refund affected passengers following clarification from the Nigeria Revenue Service (NRS).

The issue came to light after an X user, @oluwakemmybello, complained that her 86-year-old grandmother was forced to pay an additional ₦11,286 as VAT at the airport, despite buying her ticket in 2025. The complaint quickly gained attention and prompted the NCAA to summon Overland Airways on January 28 to explain the charge.

During the meeting with regulators, the airline argued that in aviation, taxes are applied when a ticket is flown, not when it is purchased. Overland Airways also maintained that it believed its action was in line with an understanding with the tax authorities.

However, the Director of Air Transport Regulations at the NCAA sought further clarification from Taiwo Oyedele regarding the application of the new tax rule. The Nigeria Revenue Service later confirmed that tickets purchased before January 1, 2026, are not affected by the new VAT policy.

This clarification means passengers who bought their tickets in 2025 should not have been charged VAT in 2026 during check-in, even if the flight was scheduled for the new year.

Providing an update via his X handle @mikeachimugu01, Achimugu stated that Overland Airways has now received official clarification from the NRS and acknowledged that the affected passengers were not supposed to be charged. He noted that the airline has committed to redressing the situation by initiating refunds.

Achimugu explained that while the airline initially acted based on its interpretation of the tax framework, the responsibility for clear guidance rested with the tax authority, which has now provided definitive clarification. He described the matter as resolved satisfactorily and commended the airline for its transparency and cooperation.

The NCAA also reaffirmed its commitment to protecting the rights of passengers and ensuring regulatory compliance within Nigeria’s aviation sector. Achimugu praised the Director-General of Civil Aviation, Capt. Chris Najomo, and other officials for their role in addressing the complaint promptly.

With the clarification now in place, affected passengers can expect refunds, bringing closure to a matter that raised concerns about consumer protection and clarity in Nigeria’s aviation tax policies.