Overland Airways to refund passengers charged VAT on 2025 tickets
The Director of Public Affairs and Consumer Protection at the Nigeria Civil Aviation Authority (NCAA), Michael Achimugu, has disclosed that Overland Airways will refund passengers who were wrongly charged value-added
The Director of Public Affairs and Consumer Protection at the Nigeria Civil Aviation Authority (NCAA), Michael Achimugu, has disclosed that Overland Airways will refund passengers who were wrongly charged value-added tax (VAT) on tickets purchased in 2025.
On January 28, the NCAA summoned the airline following a complaint over the payment of VAT on tickets purchased before 2026.
The invitation followed a complaint by X user @oluwakemmybello, who stated that her 86-year-old grandmother was forced by Overland Airways to pay an additional N11,286 as VAT on a 2025 ticket.
During the meeting with the airline, the NCAA disclosed that the airline's argument was that the tax in aviation is charged on the ticket flown and not when the ticket is purchased. The airline further claimed to have a standing agreement with the tax body.
The Director of Air Transport Regulations at NCAA however confirmed with Mr Taiwo Oyedele that the tax should not apply to tickets purchased before 2026.
The NCAA gave the airline time to seek further clarification from the Nigeria Revenue Service (NRS), noting that they must facilitate a refund to all passengers affected if the NRS clarifies otherwise.
Giving an update on the matter, Achimugu on Saturday via his X handle @mikeachimugu01 posted: "As directed by the Nigeria Civil Aviation Authority, NCAA, the operator, Overland Airways has reverted with clarification from the Nigeria Revenue Service, NRS, as follows:
"That tickets purchased before January 1, 2026, were not affected by the new tax laws. This means that passengers who were made to pay VAT before check-in in 2026 for tickets purchased since 2025, were not supposed to have been charged.
"Overland Airways, a responsible, law-abiding entity, therefore, has committed to redressing the situation by initiating a refund for affected passengers.
"It is necessary to re-clarify that, even in my initial update about this case, I stated the reasons why the airline felt a need to charge VAT in the way that it did. The onus was on the NRS to clarify, which they have now done. I was also clear about the position of the NCAA.
"This issue has now been brought to a satisfactory conclusion, and Overland Airways has shown transparency, cooperation, and responsibility".
Achimugu while pledging the commitment of the Authority to protects rights of all stakeholders, lauded the DGCA, Capt. Chris Najomo and other colleagues for their role in resolving the matter.
