The Nigerian Civil Aviation Authority (NCAA) has summoned Overland Airways over complaints of Value Added Tax (VAT) charges imposed on flight tickets purchased in 2025 but flown in 2026, amid uncertainty surrounding the implementation of Nigeria’s new aviation tax regime.
The regulatory action followed a public complaint by an X user, Oluwa Kemmy Bello, who alleged that her 86-year-old grandmother was compelled to pay an additional ₦11,286 as VAT at Ilorin Airport while travelling on an Overland Airways flight, despite having purchased the ticket in 2025.
Prior to 2026, airlines were reportedly exempt from charging VAT on air tickets. However, in September 2025, the Nigeria Revenue Service (NRS), formerly the Federal Inland Revenue Service (FIRS), announced that airlines would become liable to VAT on tickets from January 1, 2026, following the introduction of new tax laws.
Responding to the complaint, NCAA Director of Public Affairs and Consumer Protection, Michael Achimugu, confirmed that the Authority invited Overland Airways to a meeting involving officials from the Consumer Protection Directorate, Air Transport Regulations, Policy and Enforcement Unit, Flight Operations and Adjudication Department, and the Legal Directorate.
According to Achimugu, Overland Airways argued that aviation taxes are applied at the point of flight rather than at the time of ticket purchase, adding that the airline claimed to have a standing understanding with the tax authority on this basis.
However, the NCAA maintained that any previous arrangement between the airline and any institution is superseded by the new tax framework, unless otherwise clarified by the Nigeria Revenue Service.
“The Director of Air Transport Regulations confirmed that tax policy expert Mr. Taiwo Oyedele had indicated that VAT should not apply to tickets purchased before 2026,” Achimugu said. “Nevertheless, the NCAA stressed that formal clarification must still be obtained directly from the NRS.”
He noted that Overland Airways expressed concern that it could be forced to pay a backlog of taxes if the NRS rules that tickets bought before 2026 but flown in 2026 are subject to VAT.
As part of the resolution, the NCAA directed Overland Airways to obtain written clarification from the NRS within 10 days on whether retrospective taxation applies in such cases. The airline was also instructed to refund all affected passengers should the tax authority confirm that VAT does not apply to tickets purchased before 2026.
Achimugu added that Overland Airways has agreed to comply with the directive and submit the NRS response within the stipulated timeframe, while affected passengers have been urged to remain patient pending the outcome of the clarification process.
The development comes amid heightened public scrutiny over aviation costs and consumer protection in Nigeria’s domestic aviation sector.
