A Nigerian medical practitioner, Dr. Okolo Oteri Eme, has raised the alarm and called for regulatory intervention after receiving a demand from Overland Airways for an additional 7.5% payment on an air ticket purchased and fully settled in November 2025.
The charge, which the airline states is a newly introduced Value Added Tax (VAT) mandated by the Nigeria Tax Act 2025, has sparked confusion and allegations of potential overreach, as it applies to a transaction completed under the previous fiscal regime.
This controversy follows an email sent to Dr. Okolo on the morning of 2nd January 2026. The correspondence, seen by this publication, informed her that “an additional sum of 7.5% of your base fare will be required to be paid by you on or before your travel date.” This was attributed to the Act being “signed into law by the President of the Federal Republic of Nigeria effective January 1, 2026.”
However, Okolo in post on her social media handle on Saturday, contends that the retroactive application is unknown to her.
“The ticket had been paid for since November and should not be subjected to an increase given that the new tax regime took effect from January 1st, 2026.This is a transaction concluded under the old law. It is deeply concerning if businesses are interpreting the new Act to apply to already-completed contracts”, she stated.
The doctor has publicly called for clarity from multiple authorities. Having been unable to directly tag the airline on social media, she has called on the public to help bring the matter to the attention of Overland Airways.
More significantly, she has formally called upon the Honourable Minister of Aviation and Aerospace Development, Festus Keyamo SAN, to wade into the issue to protect consumer rights and ensure correct interpretation of aviation commerce regulations.
Furthermore, she has sought the expertise of the Chairman of the Presidential Committee on Tax Policy and Reform, Mr. Taiwo Oyedele, asking for his committee to clarify the temporal application of the new VAT provisions.
“Does this law apply to receipts issued before January 1st, or only to sales conducted thereafter? The ambiguity is causing public anxiety,” Dr. Okolo remarked.
Overland Airways, in its email, defended the charge by referencing “the terms and conditions associated with your ticket at the point of purchase,” though the specific clause was not cited. The airline has apologised for “any inconvenience” and directed customers to contact them for the exact amount due.
Legal and financial experts suggest the case hinges on the doctrine of “grandfathering” and the specific phrasing of the new Tax Act. A standard principle in tax law is that new charges apply prospectively, not retrospectively, unless explicitly stated otherwise by the legislation.
“The key question is whether the Act imposes VAT on the supply of the service, which occurred when the ticket is used in 2026, or on the payment received in 2025,” explained a Lagos based tax consultant who asked not to be named. “If it’s the former, the airline may have a point, but they would then be liable to remit that VAT to the government. If it’s the latter, then this demand is incorrect.”
The Nigerian Civil Aviation Authority (NCAA) has historically mandated that all fare components, including taxes, be transparent and stated at the point of sale. This incident tests whether a post-purchase adjustment complies with those consumer protection standards.
As of the time of filing this report, there has been no public response from Overland Airways, the Ministry of Aviation, or the Tax Reform Committee.
Dr. Okolo has confirmed she will withhold the additional payment pending official clarification from the authorities.
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