NCAA Orders Overland Airways to Refund VAT Charges

The Nigerian Civil Aviation Authority (NCAA) has directed Overland Airways to refund passengers who were wrongly charged Value Added Tax (VAT) on flight tickets purchased before January 1, 2026. This directive follows complaints from passengers, including an elderly woman, who were compelled to pay additional VAT charges at airport counters despite purchasing tickets prior to the implementation of the new tax regime by the Nigeria Revenue Service, which takes effect on January 1, 2026.

Michael Achimugu, the Director of Public Affairs and Consumer Protection at NCAA, clarified that passengers who bought tickets in 2025 should not be subjected to the new VAT charges. The NCAA's regulatory engagement with Overland Airways led to the airline's agreement to rectify the situation and initiate refunds for affected passengers.

The controversy arose during a peak travel period in December, causing unexpected financial burdens for travelers.