FCCPC Establishes Case Of Arbitrary Price Fixing By Local Airlines – Independent Newspaper Nigeria

2

ABUJA – The Federal Competition and Consumer Protection Commis­sion (FCCPC) said it has uncov­ered patterns of price manipu­lation perpetrated by some local airlines during the last festive season.

The findings are contained in the interim report released on Thursday by the commission’s department of Surveillance and Investigations.

The commission had an­nounced an industry-wide inves­tigation earlier in January.

A statement issued by Ondaje Ijagwu, Director, Corporate Af­fairs, FCCPC, said

the forensic exercise benefit­ted from data collated by the com­mission from airlines operating local routes in the country.

The report compares do­mestic airline pricing from the December 2025 festive period with post-peak January 2026 fare levels.

“Preliminary analysis indi­cates that fares recorded during the December peak were materi­ally higher than those observed in the post-peak period across sever­al routes despite relative stability in critical operating variables like fuel price, government taxes and foreign exchange.

“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.

“For instance, on certain cor­ridors like Abuja-Port Harcourt, peak fares were several times higher than corresponding post-peak levels.

“On selected routes, the differ­ence in the price of a single ticket reached approximately N405,000.

“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.”

Commenting on the release of the interim report, the Exec­utive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, said the review is part of the commission’s stat­utory responsibility to promote competitive markets and safe­guard 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,” Mr. 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.