Michael Achimugu, Director of Public Affairs and Consumer Protection at the Nigerian Civil Aviation Authority (NCAA), has announced that Overland Airways will refund passengers who were incorrectly charged value-added tax (VAT) on tickets purchased in 2025.
The resolution follows clarification from the Nigeria Revenue Service (NRS), confirming that tickets bought before January 1, 2026, were not subject to the new tax laws. Achimugu stated: “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.”
He praised Overland Airways for its cooperation, describing the airline as “a responsible, law-abiding entity” that “has committed to redress the situation by initiating a refund for affected passengers.” Achimugu added: “This issue has now been brought to a satisfactory conclusion, and Overland Airways has shown transparency, cooperation, and responsibility.”
The matter originated from a public complaint on X (formerly Twitter) by a user whose 86-year-old grandmother was required to pay an additional N11,286 as VAT at Ilorin Airport before boarding, despite having purchased the ticket in 2025 prior to the introduction of the new tax regime.
In response, the NCAA summoned Overland Airways on January 28, 2026, to address the dispute and directed the airline to seek formal clarification from the NRS on whether the tax applied retrospectively to pre-2026 purchases.
Following the NRS confirmation that no such retrospective application exists, the NCAA has overseen the commitment to refunds.
Achimugu thanked key NCAA officials, including Director-General Chris Najomo, for their roles in resolving the issue and reiterated the authority's dedication to safeguarding consumer rights in the aviation sector.
The update was shared by Achimugu on X, marking the end of the controversy that highlighted concerns over potential retroactive taxation in airline ticketing.
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