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The Nigerian Civil Aviation Authority (NCAA) has directed Overland Airways to seek formal clarification from the relevant tax authority on the applicability of aviation taxes to tickets purchased before 2026 but flown in 2026.
This followed a meeting held on Tuesday between the NCAA and officials of Overland Airways to address concerns arising from the implementation of the new tax regime in the aviation sector.
The NCAA delegation to the meeting include the Director of Consumer Protection, the Director of Air Transport Regulations, the General Manager of Policy and Enforcement, the Head of Flight Operations and Adjudication, as well as legal officers from the Authority’s Legal Directorate and other officials.
According to Michael Achimugu, Director of Consumer Protection and Public Affairs at NCCA at the meeting, Overland Airways argued that aviation taxes were charged on tickets when flights are operated, not when tickets are purchased.
He added that the airline maintained that it has a standing agreement with the tax authority to this effect.
However, he said, the NCAA countered that any previous agreement between the airline and any institution is superseded by recent policy developments, unless explicitly stated otherwise by the Nigerian Revenue Service (NRS).
“The Director of Air Transport Regulations informed the meeting that Mr. Taiwo Oyedele had confirmed that the tax should not apply to tickets purchased before 2026.
“Nevertheless, the NCAA stressed that official clarification must still be obtained directly from the NRS.
“Overland Airways expressed concern that it could be compelled to pay a backlog of taxes should the NRS rule that tickets bought before 2026 but flown in 2026 are taxable,” he is explained.
As a part of the resolution, the NCAA instructed the airline to, within 10 days, obtain a written position from the NRS on whether the tax applies retrospectively.
The Authority also directed Overland Airways to refund all affected passengers should the NRS clarify that the tax does not apply to tickets purchased before 2026.
“Overland Airways is expected to submit the NRS response to the NCAA within the stipulated 10-day period.
“Passengers affected by the situation have been urged to remain patient pending the outcome of the clarification process,” he stated. (The Sun)
