The Nigerian Civil Aviation Authority (NCAA) has intervened in a growing controversy surrounding the imposition of an additional tax on airline tickets by Overland Airways, following complaints that the charge was applied retroactively to tickets purchased before the new tax regime took effect.
The issue gained public attention after a passenger, identified on X as @oluwakemmybello, accused the airline of collecting what she described as a “new VAT” or special tax on tickets bought in 2025, following a tax introduced by the Nigeria Revenue Service (NRS) from January 1.
In her post, the passenger alleged that her 86-year-old grandmother was asked to pay an extra N11,286 at the Ilorin Airport before being allowed to board, despite having purchased her ticket long before the new tax came into force.
“Dear @mikeachimugu01, kindly assist in clarifying if a ticket purchased since last year 2025 attracts additional VAT? My 86-year-old Grandma was forcibly made to pay N11,286 as new VAT today at Ilorin airport by @OverlandAirways @cpdncaa, please help,” she wrote.
The allegation sparked public concern over possible sharp practices by airlines and renewed fears that passengers could be burdened with multiple and unclear taxes within the aviation sector.
Responding to the complaint, the Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, confirmed on Wednesday that the authority had summoned Overland Airways for an urgent meeting to explain the basis for the additional charge.
According to Achimugu, the meeting involved senior officials of the NCAA, including the Director of Consumer Protection, the Director of Air Transport Regulations, the General Manager for Policy and Enforcement, the Head of Flight Operations and Adjudication, as well as legal officers from the authority.
“We summoned the airline, Overland, yesterday. We have heard their side of things,” Achimugu said.
He explained that the airline argued that aviation taxes are charged when a ticket is flown rather than when it is purchased, adding that Overland Airways claimed to have a long-standing agreement with the tax authorities to that effect.
However, the NCAA rejected this position, insisting that any previous arrangement must now be subjected to the provisions of the new tax regime and formal clarification from the Nigeria Revenue Service.
“The NCAA’s position is that any such agreement between the airline and anybody in the past is overtaken by new events, unless stated otherwise by the NRS,” Achimugu said.
He further disclosed that the Director of Air Transport Regulations had spoken with the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, who reportedly confirmed that the new tax should not apply to tickets purchased before 2026.
The NCAA noted that this position would still require official validation by the NRS. According to the regulator, the airline’s concern centres on the possibility of being compelled to pay a backlog of taxes if the revenue authorities later rule that tickets bought before 2026 but flown in 2026 should attract the new charge.
“The airline’s fear is that they would be forced to pay a backlog of taxes if the NRS maintains that tickets purchased before 2026 but flown in 2026 must be charged,” Achimugu explained.
The NCAA has directed Overland Airways to immediately seek formal clarification from the NRS and submit a response within 10 days. The regulator added that if the NRS rules against the airline’s interpretation, Overland Airways must refund all affected passengers.
“Given our determination, they have been told that they must facilitate a refund to all passengers affected by this situation if the NRS clarifies otherwise. They agreed,” Achimugu said.
When contacted, an officer of the airline, Monday Ukoha, who is said to handle publications, stated that he is not the spokesperson of Overland Airways. Efforts to reach the airline’s Chief Executive Officer, Capt Boyo Edward, were unsuccessful, as he did not respond to calls or text messages seeking comment.
