FCCPC Finds Evidence of Airfare Manipulation by Domestic Airlines

FCCPC

FCCPC Finds Evidence of Airfare Manipulation by Domestic Airlines

The Federal Competition and Consumer Protection Commission (FCCPC) says it has uncovered credible evidence of airfare manipulation by domestic airlines in Nigeria, revealing that some carriers may have artificially inflated ticket prices during the December 2025 festive travel season beyond what market forces would justify. In an interim report released on Thursday, the FCCPC said its extensive forensic review of airfare data collected directly from airlines across key domestic routes shows striking irregularities in pricing patterns that appear inconsistent with normal seasonal demand, fuel costs, foreign exchange movements, or other operational variables.

The review by the Commission’s Surveillance and Investigations Department, led by Director of Corporate Affairs Ondaje Ijagwu, compared peak-season fares in December 2025 against ticket prices in the post-holiday period of January 2026. In many cases — notably on high-traffic corridors such as Abuja–Port Harcourt, Lagos–Calabar, and Lagos–Enugu — the difference in fares reached as high as ₦405,000 for a single ticket, even though essential cost drivers remained relatively stable. “These fare differences appear to reflect airlines’ arbitrary pricing decisions, yield management strategies, and capacity allocation practices rather than any variation in regulated fees or significant changes in operating conditions,” Ijagwu said, suggesting that multiple domestic carriers might have engaged in tacit coordination rather than true competition.

The report also showed that during the peak period, reduced seat availability paired with clustered price ranges across multiple operators raised further competition concerns, lending weight to potential violations of Nigeria’s Federal Competition and Consumer Protection Act (FCCPA) 2018. The interim findings flagged possible breaches of provisions governing restraint of competition, abuse of dominant positions, price-fixing, conspiracy, unfair contract terms, and consumers’ right to fair dealings — signalling that airlines may have breached multiple competition and consumer protection rules.

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The Airline Operators of Nigeria (AON) swiftly pushed back against the FCCPC’s report. AON spokesman Prof. Obiora Okonkwo said the Commission lacks the specialised expertise to analyse aviation pricing, warning that the probe could harm Nigeria’s fragile airline sector. “They don’t understand the economics of airlines or how ticket prices are set based on yield, load factors, aircraft utilisation and revenue management systems,” Okonkwo said. “This action is very detrimental to the survival of domestic operators.”

Independent aviation analysts in Nigeria say pricing behaviour in the sector has long lacked transparency. Dr. Uche Okoro, a transport economist, told news editors that while peak-season travel normally pushes fares up, the consistency of spikes across multiple airlines on the same dates and routes — even where there was no significant change in fuel or exchange rates — suggests coordinated pricing behaviour. “Market competition should push airlines to differentiate prices based on service levels and actual costs,” Okoro said. “When several carriers raise prices almost in unison, especially on predictable peak travel dates, it warrants scrutiny.”

The Nigerian Civil Aviation Authority (NCAA) acknowledged the FCCPC’s interim report and pledged to support the broader probe, noting that the aviation sector must balance airline financial sustainability with fair market practices. An NCAA spokesperson said: “We are engaging with the FCCPC and industry stakeholders to promote a transparent pricing environment. While airlines need to remain viable, consumers must also be protected from exploitative fare regimes.” The NCAA emphasised that factors such as fleet size limits, airport slot restrictions, seasonal demand patterns, and infrastructure capacity do affect pricing, but agreed that unusually steep price spikes merit investigation.

According to the FCCPC, the route-by-route analysis showed that on Abuja–Port Harcourt, average peak-period fares were far higher than post-peak levels, with many tickets in December priced well above the typical seasonal range. On Lagos–Calabar and Lagos–Enugu, similar patterns of clustered fare bands across airlines suggested pricing behaviour broadly aligned among competitors rather than differentiated by market forces. Across sampled routes, median fares during the festive period were significantly elevated compared with post-peak benchmarks, despite stable fuel price trends, unchanged airport taxes, and no major exchange rate shocks. The FCCPC noted that while predictable seasonal demand surges can justify higher fares, the magnitude and pattern of the increases observed in December 2025 are not fully explained by ordinary market conditions.

FCCPC Executive Vice Chairman and CEO Tunji Bello stressed that the interim report is not an enforcement action, but a step toward deeper investigation. “The Commission’s role is to ensure that market outcomes reflect competition and consumer protection principles,” he said, adding that full findings and possible enforcement measures will follow after the ongoing review. Bello also signalled that foreign airlines operating international routes involving Nigeria will soon be probed, following complaints that Nigerian passengers are often charged significantly higher fares on similar international distances. “No operator — domestic or foreign — will be shielded if evidence confirms fare-fixing or consumer exploitation,” Bello said. The FCCPC has asked both airlines and consumers to assist in the investigation by providing additional data, while warning airlines that violations of the FCCPA could result in regulatory sanctions, fines, or mandatory corrective orders once the full review is concluded.