The Nigeria Civil Aviation Authority (NCAA) has ordered Overland Airways to refund passengers who were incorrectly imposed with Value Added Tax (VAT) on flight tickets purchased prior to January 1, 2026. This order comes in response to complaints from passengers, particularly highlighted by one incident involving an elderly woman who was charged the tax in 2025, despite its implementation being scheduled for a later date. The NCAA's directive was reinforced by a clarification from the Nigeria Revenue Service (NRS) regarding the tax regime affecting airline tickets.

NCAA's Director of Public Affairs and Consumer Protection, Michael Achimugu, indicated that a resolution had been reached following discussions among the NCAA, Overland Airways, and NRS. The refund process aims to rectify the financial burden mistakenly placed on the passengers due to premature tax collection by the airline. This incident underscores the importance of regulatory compliance in the airline industry and highlights the necessity of clear communication regarding taxation policies.

This situation reflects broader challenges in tax administration and consumer rights within Nigeria's aviation sector. By directing a refund, the NCAA not only reinforces consumers' rights but also aims to ensure that airlines adhere strictly to the guidelines set forth by the Revenue Service. The effectiveness of such interventions can significantly influence public trust in transport services, particularly in the wake of ongoing discussions about improving passenger experiences and accountability among airlines.