The Nigerian Civil Aviation Authority (NCAA) has summoned Overland Airways following complaints over alleged Value Added Tax (VAT) charges imposed on flight tickets purchased in 2025 but flown in 2026.
The action followed a public complaint by Oluwa Kemmy Bello, who, on 21 January, raised concerns on X about her 86-year-old grandmother, who was reportedly compelled to pay an additional ₦11,286 in VAT at Ilorin Airport while travelling on an Overland Airways flight.
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“Dear @mikeachimugu01 kindly assist clarify if a ticket purchased since last year 2025 attracts additional VAT? My 86-year-old grandma was forcibly made to pay ₦11,286 as new VAT today at Ilorin Airport by OverlandAirways,” she wrote.
In a response shared on Wednesday, the NCAA Director of Public Affairs and Consumer Protection, Michael Achimugu, said the regulator invited the airline to explain the incident on Tuesday.
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Mr Achimugu said the NCAA delegation included officials from the Consumer Protection Directorate, Air Transport Regulations, Policy and Enforcement Unit, Flight Operations and Adjudication Department, as well as legal officers from the authority.
According to him, Overland Airways argued that aviation taxes are charged at the point of flight rather than when tickets are purchased, adding that the airline claimed to have an existing understanding with the tax authorities on the matter.
However, the regulator said any previous arrangement could not override current regulatory guidance unless formally confirmed by the relevant tax authority.
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“The NCAA’s position is that any such agreement between the airline and anybody in the past is overtaken by new developments, unless stated otherwise by the Nigeria Revenue Service,” Mr Achimugu noted.
He added that the Director of Air Transport Regulations had earlier confirmed through tax policy expert Taiwo Oyedele that VAT should not apply to tickets purchased before 2026. However, further clarification was required from the Nigeria Revenue Service (NRS).
Mr Achimugu said Overland Airways has been directed to seek official clarification from the tax authority within 10 days and submit its response to the NCAA.
He said the airline was also instructed to facilitate refunds to all affected passengers if the tax authority confirms that retrospective VAT charges do not apply to tickets purchased before 2026.
“The airline has agreed to refund all passengers affected by this situation if the NRS clarifies otherwise,” he said.
The development comes amid growing public concerns over rising aviation costs and consumer protection issues within Nigeria’s domestic aviation sector.
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