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Home Business news

FCCPC Uncovers Alleged Price Manipulation by Local Airlines During Festive Season

Victoria Emeto by Victoria Emeto
February 27, 2026
in Business news
0
FCCPC Uncovers Alleged Price Manipulation by Local Airlines During Festive Season

The Federal Competition and Consumer Protection Commission (FCCPC) says it has uncovered patterns of price manipulation by some local airlines during the December 2025 festive season.

The Commission disclosed this in an interim report released on Thursday by its Department of Surveillance and Investigations.

According to Ondaje Ijagwu, Director of Corporate Affairs, the findings followed a forensic review of pricing data collated from airlines operating domestic routes across Nigeria.

The report compared ticket prices during the December 2025 peak travel period with post-peak fare levels recorded in January 2026.

Preliminary analysis showed that fares during the festive window were significantly higher than those observed after the holiday rush. This occurred despite relative stability in key operating costs such as aviation fuel prices, government taxes, and foreign exchange rates.

The Commission stated that the fare differences appeared to reflect airlines’ pricing strategies, including yield management and seat allocation decisions, rather than changes in regulatory charges.

Route-level analysis further revealed that higher fares coincided with reduced seat availability during predictable seasonal demand peaks.

On some high-traffic corridors, peak fares were clustered within narrow price ranges across multiple operators.

For instance, on the Abuja–Port Harcourt route, festive fares were several times higher than post-peak levels. On selected routes, the difference in the cost of a single ticket reached approximately ₦405,000. Median fares across sampled routes also rose sharply during the holiday period.

However, the Commission acknowledged that seasonal demand pressures, flight scheduling constraints, and fleet utilisation may influence pricing during peak travel seasons. These factors, it said, remain under review.

Commenting on the report, FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the assessment was aimed at providing clarity on airline pricing behaviour during predictable peak travel periods.

He stressed that the Commission’s role is not to disrupt legitimate business activity but to ensure that market outcomes align with competition and consumer protection principles under the law.

Bello added that the Commission’s next steps would depend on the full findings of the ongoing review.

The interim report identified the possible relevance of Sections 59, 72, 107, 108, 124 and 127 of the Federal Competition and Consumer Protection Act 2018.

These sections address issues including restraint of competition, abuse of dominant position, price-fixing, conspiracy, the right to fair dealings, and the prohibition of unfair or unjust contract terms.

The Commission also warned that foreign airlines may face similar scrutiny after the review of local operators. This follows complaints that Nigerians are allegedly charged higher fares on certain international routes compared to travellers in neighbouring countries covering similar distances.

The FCCPC had earlier, in December 2025, opened an investigation into airfare increases on select domestic routes in the South-South and South-East regions.

The probe was initiated after growing public complaints over steep ticket prices at the start of the festive travel season.

According to Ijagwu, the investigation is examining pricing templates used by some airlines on affected routes to determine whether they violate consumer protection or competition laws.

The Commission said it will announce appropriate regulatory guidance, engagement, or enforcement actions once the review is concluded.

Tags: #AirfareHike#ConsumerProtection#FCCPC#NigeriaAviation
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