The Nigerian Civil Aviation Authority (NCAA) has summoned Overland Airways to explain complaints that passengers were charged Value Added Tax (VAT) on flight tickets purchased in 2025 but flown in 2026.
The action follows a public complaint by Oluwa Kemmy Bello, who on 21 January reported on X that her 86-year-old grandmother was compelled to pay an additional ₦11,286 in VAT at Ilorin Airport while travelling on an Overland Airways flight.
“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,” Bello wrote.
In a response shared on Wednesday, NCAA Director of Public Affairs and Consumer Protection, Michael Achimugu, said the regulator invited Overland Airways to explain the incident on Tuesday.
He added that the NCAA delegation included officials from the Consumer Protection Directorate, Air Transport Regulations, Policy and Enforcement Unit, Flight Operations and Adjudication Department, and legal officers.
According to Achimugu, Overland Airways argued that aviation taxes are charged at the point of flight rather than at ticket purchase, claiming to have an existing understanding with the tax authorities.
“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,” he noted.
He further said 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).
Overland Airways has been directed to seek official clarification from the tax authority within 10 days and submit its response to the NCAA.
The airline was also instructed to facilitate refunds if the NRS confirms retrospective VAT charges do not apply. “The airline has agreed to refund all passengers affected by this situation if the NRS clarifies otherwise,” Achimugu said.
The development comes as Nigerians continue to express concern over escalating aviation costs, consumer protection challenges, and the application of regulatory guidance across the domestic airline industry.
