The Nigerian Civil Aviation Authority has waded into a growing controversy surrounding the imposition of a new tax on airline tickets by Overland Airways, following complaints by passengers that the charge was applied retroactively to tickets purchased before the new tax regime took effect.
The issue came to 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, in response to a tax introduced by the Nigeria Revenue Service from January 1.
In a post addressed to the aviation regulators, the passenger narrated how her 86-year-old grandmother was asked to pay an additional N11,286 at the Ilorin Airport before she could be allowed to board, despite having purchased her ticket long before the new tax regime came into effect.
“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 post triggered public concern over alleged sharp practices by airlines and renewed fears that passengers may once again be made to shoulder the burden of multiple and unclear taxes in the aviation sector.
Responding to the complaint, the Director of Public Affairs and Consumer Protection at the NCAA, Michael Achimugu, on Wednesday confirmed that the regulator had summoned Overland Airways for an urgent meeting to explain the basis for the additional charge.
According to Achimugu, the meeting involved top officials of the authority, including the Director of Consumer Protection, the Director of Air Transport Regulations, the General Manager, Policy and Enforcement, the Head of Flight Operations and Adjudication, as well as lawyers from the NCAA’s legal department.
“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, not when it is purchased, adding that the carrier claimed to have a long-standing agreement with the tax authorities to that effect.
However, the NCAA rejected that position, insisting that any such arrangement must now be subject 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 the new events, unless stated otherwise by the NRS,” Achimugu stated.
He further disclosed that the Director of Air Transport Regulations had spoken with the Chairman, 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 added that this issue would still be officially validated by the NRS. The NCAA publicist said the airline’s concern “is the possibility of being compelled to pay a backlog of taxes if the revenue authorities eventually 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.”
The NCAA, however, directed Overland Airways to immediately seek formal clarification from the NRS and submit a response within 10 days. “Given our determination yesterday, 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, Monday Ukoha, an officer of the airline, said to be in charge of publications, said he was not the spokesperson of the airline.
Efforts to also speak with the Chief Executive Officer of the airline, Capt Boyo Edward, were unsuccessful as he neither picked up calls nor responded to text messages of enquiry on the development.
