NCAA Summons Overland Airways Over Alleged Retrospective VAT Charges

The Nigeria Civil Aviation Authority (NCAA) has summoned Overland Airways to address mounting allegations of consumer exploitation regarding the retroactive application of Value Added Tax (VAT) on flight tickets. The regulator’s intervention, confirmed on January 28, 2026, followed a viral complaint on X (formerly Twitter) involving an 86-year-old passenger who was allegedly “forced” to pay an additional ₦11,286 in VAT at Ilorin Airport for a ticket purchased in 2025.

While airlines were previously exempt from VAT, new tax laws that took effect on January 1, 2026, have created a friction point between operators and the flying public over whether these charges should apply to legacy bookings.

During the emergency meeting in Abuja, Overland Airways argued that in the aviation sector, taxes are legally “charged when flights are flown,” not at the point of purchase. The airline claimed to have a long-standing agreement with tax authorities to support this practice. However, the NCAA, led by Director of Consumer Protection Michael Achimugu, countered that any past informal agreements have been “overtaken by events” and the new national tax regime.

The regulator noted that tax expert Taiwo Oyedele has already indicated that the new VAT should not apply to tickets purchased before 2026, though a final legal verdict is still pending.

As a result of the summons, the NCAA has issued the following directives: Overland must obtain a formal, written clarification from the Nigeria Revenue Service (NRS) regarding retrospective taxation within a 10-Day Deadline.

 If the NRS confirms the tax is not retrospective, Overland has agreed to a Refund Mandate to facilitate immediate refunds to all affected passengers. Furthermore, for Policy Harmonization, the NCAA is working with the Ministry of Finance to ensure all domestic carriers apply the 2026 tax laws uniformly to prevent “pricing anarchy” at airport counters.

This crackdown is part of a broader “tough on inefficiency” stance by the NCAA in 2026. Earlier this month, the authority warned that it would push for stiffer penalties against domestic airlines for chronic delays and poor communication.

While Overland recorded a relatively low cancellation rate of 0.03 percent in late 2025, this tax dispute has put its consumer relations under a microscope. The NCAA has reiterated that while it supports the commercial viability of airlines, it will not tolerate “arbitrary charges” that undermine the rights of Nigerian travelers.