Local airlines caught in price fixing scandal, FCCPC alleges

Dare Babalola

The Federal Competition and Consumer Protection Commission (FCCPC) has revealed that its investigation found evidence of price manipulation by some local airlines during the recent festive period.

The FCCPC launched an investigation in January, and its interim report, released on Thursday by the Department of Surveillance and Investigations, reveals findings of price manipulation by local airlines.

The investigation, which analysed data from local airlines, compared prices during the December 2025 festive season with post-peak January 2026 fares, shedding light on the airlines’ pricing patterns.

According to FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, initial findings show that fares were significantly higher in December compared to January, despite stable fuel prices, taxes, and exchange rates.

The statement said, “The differences observed in fares therefore appear to reflect airlines’ arbitrary pricing decisions, including yield management and capacity allocation, rather than any variation in regulatory fees.

“Route-level analysis shows that higher fares coincided with periods of reduced seat availability during predictable seasonal demand peaks. On some high-density routes, peak fares were clustered within relatively narrow ranges across several operators.”

The FCCPC pointed out routes like Abuja-Port Harcourt, where peak season fares shot up to several times the post-peak levels, with one-way ticket prices differing by as much as ₦405,000 on some routes.

Median fares across the sampled routes also rose markedly during the festive window when compared with post-peak benchmarks.

“However, the interim report recognises that seasonal demand pressures, scheduling constraints and fleet utilisation may also affect pricing during peak travel periods.

“These factors remain under consideration as part of the commission’s ongoing review,” the statement said.

FCCPC’s Executive Vice Chairman and CEO, Tunji Bello, stated that the interim report is part of the commission’s duty to ensure fair markets and protect consumers.

“This assessment is intended to provide clarity on pricing behaviour during predictable peak travel periods. The Commission’s role is not to disrupt legitimate commercial activity, but to ensure that market outcomes remain consistent with competition and consumer protection principles under the law,” Bello said.

He noted that the commission is conducting further structural and route-level analysis before reaching any conclusions.

“It is important to emphasise that this is an interim report. Our next action will be dictated by full facts established at the end of the review exercise. Then, the Commission will decide whether any regulatory guidance, engagement or enforcement steps are necessary, strictly in accordance with the law,” he said.

The report identifies the possible relevance of Sections 59, 72, 107, 108, 124 and 127 of the Federal Competition and Consumer Protection Act 2018, which respectively address the prohibition of agreements in restraint of competition, the prohibition of abuse of a dominant position, the offence of price-fixing, conspiracy to commit offences under the Act, the right to fair dealings, and the prohibition of unfair, unreasonable or unjust contract terms.

Meanwhile, Bello announced that foreign airlines will come under FCCPC radar after the ongoing review of local airlines in view of widespread complaints of exploitative fares they allegedly charge Nigerians on certain routes compared to fares in neighbouring countries that are of equal distance.

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