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HomeBUSINESSFCCPC uncovers evidence of fare manipulation by local airlines

FCCPC uncovers evidence of fare manipulation by local airlines

The Federal Competition and Consumer Protection Commission, FCCPC, has uncovered patterns of suspected price manipulation by some domestic airlines during the 2025 Christmas travel season, raising fresh concerns about consumer protection in Nigeria’s aviation market.

The findings are contained in an interim report released Thursday by the Commission’s Surveillance and Investigations Department following an industry-wide probe launched in January.

According to a statement by the Commission’s Director of Corporate Affairs, Ondaje Ijagwu, the forensic review relied on data obtained from airlines operating domestic routes and compared ticket pricing during the December 2025 festive peak with post-peak fare levels in January 2026.

Ijagwu said preliminary analysis showed that airfares during the December peak were significantly higher across several routes, despite relative stability in key cost drivers such as aviation fuel prices, government taxes and foreign exchange rates.

The Commission said the observed fare differences appear to reflect airlines’ pricing choices, including yield management strategies and capacity allocation, rather than changes in regulatory fees.

Route-level analysis further indicated that higher fares often coincided with reduced seat availability during predictable seasonal demand surges. On some high-density routes, peak fares were tightly clustered within narrow bands across multiple operators.

For example, on the Abuja–Port Harcourt corridor, festive season fares were several times higher than post-peak levels.

On certain routes, the price gap for a single ticket reached approximately N405,000, while median fares across sampled routes rose markedly during the holiday window.

However, the interim report acknowledged that seasonal demand pressures, scheduling limitations and fleet utilisation challenges can also influence pricing during peak travel periods.

The Commission said these variables remain under consideration as the investigation continues.

While commenting on the report, FCCPC Executive Vice Chairman, Tunji Bello, said the exercise forms part of the agency’s statutory mandate to promote competitive 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 stated.

He stressed that the document remains an interim report and that the Commission is undertaking further structural and route-level analysis before drawing final conclusions.

“Our next action will be dictated by full facts established at the end of the review exercise. The Commission will then determine whether any regulatory guidance, engagement or enforcement steps are necessary, strictly in accordance with the law,” he added.

The report highlighted the potential relevance of several provisions of the Federal Competition and Consumer Protection Act 2018, including sections dealing with restraint of competition, abuse of dominant position, price-fixing, conspiracy, fair dealing and the prohibition of unfair contract terms.

Meanwhile, Bello disclosed that foreign carriers will be the next focus of the Commission’s scrutiny following the ongoing review of domestic operators.

He said the move is prompted by widespread complaints that some international airlines charge Nigerian travellers significantly higher fares on certain routes compared with prices in neighbouring countries covering similar distances.

The FCCPC said the investigation remains ongoing and that further actions will depend on the final outcome of the review.

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