The Nigeria 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.

The directive followed a clarification by the Nigeria Revenue Service regarding the implementation of the new VAT regime affecting airline tickets.

According to the regulator, tickets bought before the effective date of the new tax policy should not have attracted additional VAT charges, even if the travel date fell in 2026.

The issue gained attention after passengers complained that they were compelled to pay extra VAT at airport counters despite purchasing their tickets months earlier in 2025.

One widely reported case involved an elderly passenger who was required to pay the new tax during check-in, sparking public concern.

In a statement issued by the NCAA’s Director of Public Affairs and Consumer Protection, Michael Achimugu, the authority confirmed that regulatory engagement had resolved the matter.

He explained that the tax authority had now clarified that the VAT policy applies only to tickets purchased from January 1, 2026, onward.

According to the NCAA, the airline initially implemented the VAT charge based on its interpretation of the fiscal policy.

However, following official clarification, Overland Airways has committed to refunding all affected passengers.

What This Means for Air Travelers

Passengers who purchased flight tickets before January 1, 2026, but were charged VAT during check-in in 2026, are entitled to refunds.

The NCAA emphasized that airlines must strictly adhere to tax implementation timelines to avoid financial burden on travelers.

The development underscores the importance of regulatory oversight in Nigeria’s aviation sector and provides relief to passengers impacted during the transition to the new VAT policy.