NCAA Orders Air Peace, Max Air, United Nigeria Airlines, Others to Refund Wrongful VAT Charges
- The NCAA has ordered airlines to refund VAT wrongly charged on tickets purchased before January 1, 2026
- Passenger backlash prompted regulatory intervention after confusion over VAT implementation for airline tickets
- The airlines have committed to the refunds, reinforcing consumer rights in Nigeria's aviation sector amid fiscal policy changes
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Nigeria Civil Aviation Authority has ordered several domestic carriers, including Air Peace, Max Air, United Nigeria Airlines and Overland Airways, to refund passengers who were wrongly charged Value Added Tax on tickets purchased before January 1, 2026.
The directive follows mounting complaints from travellers who said they were compelled to pay additional VAT at airport counters despite buying their tickets months before the new tax regime took effect.
Source: UGC
Tax confusion sparks passenger backlash
The controversy began after reports emerged that an elderly passenger was forced to pay VAT in 2025 for a ticket that should not have been subject to the new tax policy. The incident triggered widespread concern among travellers and prompted regulatory intervention.
Under the revised fiscal framework introduced by the Nigeria Revenue Service, VAT adjustments on airline tickets were scheduled to take effect from January 1, 2026. However, passengers who purchased tickets before that date were not meant to incur additional charges, regardless of their travel date.
According to the NCAA, some airlines implemented the VAT requirement based on their interpretation of the new tax rules, which led to confusion and passenger complaints.
NCAA clarifies position
Michael Achimugu, Director of Public Affairs and Consumer Protection at the NCAA, confirmed that the matter has now been resolved following regulatory engagement with both the airlines and the tax authorities.
He explained that tickets purchased before January 1, 2026, remain exempt from the updated VAT provisions. Passengers who bought tickets in 2025 but were later asked to pay VAT during check-in in 2026 were wrongly charged.
ThisDay reported that the aviation regulator said it had earlier communicated its position to the affected airlines but sought formal clarification from the Nigeria Revenue Service to eliminate any ambiguity surrounding the tax implementation.
“The onus was on the NRS to clarify, which they have now done,” Achimugu stated, adding that the clarification has settled the dispute.
Airlines commit to refunds
Following the regulator’s intervention and the tax authority’s clarification, the affected airlines have agreed to initiate refunds for passengers who were improperly charged.
Overland Airways was specifically mentioned as having reverted with formal clarification from the tax authority and committed to redressing the situation. Other airlines named in the directive are expected to comply with the NCAA’s order.
The development offers relief to passengers who felt blindsided by unexpected charges at airport terminals. It also underscores the NCAA’s role in protecting consumer rights within Nigeria’s aviation sector.
Stronger consumer protection signal
Industry observers say the directive sends a clear message to operators about strict compliance with regulatory guidance, particularly when fiscal policies are involved.
For passengers, the decision reinforces the principle that taxes cannot be applied retroactively. For airlines, it serves as a reminder that interpretations of policy must align with official clarification before implementation.
With the matter now resolved, affected travellers can expect reimbursement as airlines move to correct the error and restore public confidence.
Source: Facebook
FCCPC report identifies airlines with price manipulation
Legit.ng earlier reported that The Federal Competition and Consumer Protection Commission has uncovered what it describes as troubling patterns of price manipulation among some domestic airlines, following an extensive review of ticket sales during the December 2025 festive rush.
In an interim report released by its surveillance and investigations department, the commission revealed that airfare hikes recorded during the peak holiday period appeared significantly higher than post-peak fares in January 2026, despite little or no change in key cost drivers such as aviation fuel prices, taxes, and foreign exchange rates.
The findings, according to FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, were based on data obtained directly from airlines operating across Nigeria’s local routes.
Source: Legit.ng
