NCAA Orders Overland Airways to Refund Passengers Charged VAT Early

The NCAA has ordered Overland Airways to refund passengers charged VAT on tickets purchased before January 1, 2026.

By Precious E.

 
The Nigeria Civil Aviation Authority (NCAA) has instructed Overland Airways to refund passengers who were incorrectly charged Value Added Tax (VAT) on tickets purchased before January 1, 2026.

The decision follows clarification from the Nigeria Revenue Service (NRS) on how the new VAT rules should be applied to airline tickets. The move comes after passengers raised complaints that they were asked to pay the tax months before it officially took effect.

Passengers to Receive Refunds for Pre-2026 Tickets

Michael Achimugu, Director of Public Affairs and Consumer Protection at the NCAA, said the regulator engaged with both the airline and the NRS to resolve the issue.

“Tickets bought before January 1, 2026, were not subject to the new VAT regulations,” Achimugu stated. “Passengers who were charged at check-in in 2026 for tickets purchased in 2025 should be refunded.”

The airline had initially applied the tax based on its own interpretation of the policy, prompting complaints from travelers. The NCAA stepped in to ensure the correct rules were enforced and to protect consumer rights.

Overland Airways has now committed to reimbursing passengers who were incorrectly charged. The airline’s prompt response follows regulatory discussions clarifying that pre-2026 ticket sales should remain exempt from the VAT.

Passengers who purchased tickets before the new tax law took effect described the extra charges as unexpected and financially stressful, particularly during the holiday season when travel demand is high.

The NCAA said it will continue monitoring compliance to prevent similar issues with other airlines, emphasizing that accurate implementation of tax rules is essential for consumer protection and public trust in the aviation sector.