FCCPC uncovers festive fare fixing by airlines

The Federal Competition and Consumer Protection Commission has uncovered patterns of suspected price manipulation by some domestic airlines during the December 2025 festive season, raising fresh concerns over consumer exploitation and competition in Nigeria’s aviation sector.

The findings were contained in an interim review released by the Commission’s Department of Surveillance and Investigations following an industry-wide probe announced in January. According to the agency, preliminary analysis showed ticket fares during the festive peak were significantly higher than prices recorded in January 2026, despite relative stability in key operating variables such as aviation fuel, taxes and foreign exchange.

In a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, the Commission said the forensic exercise compared domestic airline pricing during the December rush with post-peak fare levels. The agency noted that observed price differences appeared to reflect discretionary airline pricing decisions rather than external cost pressures.

Route-level analysis indicated that fare spikes coincided with reduced seat availability during predictable seasonal demand periods, suggesting possible deliberate supply constraints. On some high-density routes, peak fares were clustered within narrow ranges across multiple operators, a pattern the Commission said could indicate coordinated behaviour.

The report cited corridors such as Abuja–Port Harcourt where festive fares were several times higher than post-peak levels, with the difference on selected routes reaching about N405,000 for a single ticket. While acknowledging that seasonal demand, fleet utilisation and scheduling challenges can influence pricing, the Commission said these factors remain under review.

Executive Vice Chairman and Chief Executive Officer of the Commission, Tunji Bello, said the assessment was aimed at ensuring market outcomes align with competition and consumer protection principles. He stressed that the document was an interim report and that deeper structural and route-level analysis would determine whether regulatory or enforcement actions are required.

The agency said the findings could relate to provisions of the Federal Competition and Consumer Protection Act 2018, including sections addressing anti-competitive agreements, abuse of dominance, price-fixing, conspiracy and unfair dealings with consumers. Bello also disclosed that the probe would be extended to international airlines amid complaints that Nigerians pay higher fares than travellers in neighbouring countries on similar routes.

Airfare pricing has long been a major concern for travellers, especially during festive periods when demand surges. Airlines typically attribute high ticket costs to limited fleet capacity, expensive aviation fuel, forex constraints and operational challenges, while consumer groups accuse operators of exploiting predictable demand by restricting seat supply.

Responding to the allegations, the spokesman for the Airlines Operators of Nigeria, Obiora Okonkwo, criticised the Commission’s intervention, arguing that regulators lack the technical expertise to determine airfare pricing. He warned that such actions could harm the survival of domestic carriers, insisting pricing decisions reflect operational realities rather than manipulation.

The ongoing probe could influence pricing transparency and competition across Nigeria’s aviation sector if the Commission proceeds with enforcement measures, as regulators intensify efforts to strengthen consumer protection and fair market practices.