The Nigeria Civil Aviation Authority has taken a decisive step to protect air travelers by announcing that NCAA mandates refunds for unlawful aviation VAT charges wrongly imposed on passengers. This directive specifically targets cases where airlines collected Value Added Tax on flight tickets purchased before the January 1, 2026, implementation date of the new tax regime.
Following a high-level intervention by the Director of Public Affairs and Consumer Protection, Michael Achimugu, the regulator confirmed that any additional tax collected at check-in for tickets booked in 2025 constitutes a regulatory violation.
The move follows a series of public outcries, most notably a viral social media report involving an 86-year-old grandmother who was allegedly forced to pay an extra N11,286 at Ilorin Airport before being allowed to board her flight.
Investigations into the controversial charges revealed that some domestic operators, including Overland Airways, had misinterpreted the fiscal transition by applying the new 7.5% VAT rate retrospectively. The airlines initially argued that aviation taxes should be calculated based on the date of travel rather than the date of ticket issuance.
However, the NCAA sought definitive guidance from the Nigeria Revenue Service, which ruled that the updated tax laws do not apply to transactions completed before the commencement of the 2026 fiscal year. With this clarification, the “onus of proof” shifted entirely to the carriers, leading to a mandatory order for the immediate reversal of all such illegal collections to the affected passengers.
The regulatory body has emphasized that the satisfactory conclusion of this dispute underscores its commitment to the highest standards of consumer protection in the aviation industry. Overland Airways has since committed to a transparent refund process, acknowledging the Nigeria Revenue Service’s interpretation and pledging to redress the grievances of overcharged travelers.
The NCAA highlighted that while the airline cooperated during the adjudication process, the incident serves as a stern warning to all operators that fiscal policies must be implemented with strict adherence to official commencement dates to avoid exploiting the flying public.
Travelers who were subjected to these unauthorized VAT payments at airport counters are now advised to contact their respective airlines with proof of payment to initiate their claims. The NCAA’s Director General, Capt. Chris Najomo, has been lauded for providing the leadership necessary to resolve the impasse, ensuring that the rights of stakeholders remain a top priority.
This enforcement action comes at a time when the Federal Government is introducing various reforms to stabilize the aviation sector, with the regulator insisting that transparency and accountability are non-negotiable for all license holders operating within Nigerian airspace.
This landmark decision is expected to trigger a wider audit of airline billing systems to ensure that no other hidden or retrospective charges are being passed on to consumers. As the industry adjusts to the 2026 tax provisions, the NCAA remains vigilant, urging passengers to report any further discrepancies through its dedicated consumer protection portals. READ ALSO Global Travel Chaos as Middle East Airspace Shutdown Grounds Thousands
By enforcing these refunds, the authority has reaffirmed that the law protects passengers from arbitrary financial burdens, regardless of an airline’s internal interpretation of national fiscal shifts.
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