FCCPC Uncovers Patterns Of Price Fixing By Domestic Airlines

KEY POINTS

• An interim report by the FCCPC has identified patterns of arbitrary pricing by local airlines during the December 2025 festive season.
• Fares on high-density routes, such as Abuja-Port Harcourt, saw price differences for single tickets reaching approximately N405,000 compared to post-peak levels.
• FCCPC Executive Vice Chairman Tunji Bello announced that foreign airlines will face similar scrutiny following complaints of exploitative fares compared to neighboring countries.

MAIN STORY

The Federal Competition and Consumer Protection Commission (FCCPC) has established a case of price fixing against local airlines following a forensic investigation into the 2025 festive season. The interim report, released by the Department of Surveillance and Investigations, reveals that fares during the December peak were materially higher than those in January 2026, despite stable operating costs like fuel, taxes, and exchange rates.

The Commission’s route-level analysis suggests that airlines utilized arbitrary yield management and capacity allocation to drive up prices. In some instances, peak fares across multiple operators were clustered within narrow ranges, suggesting a lack of genuine competition. While the FCCPC acknowledges that seasonal demand and fleet utilization play a role, the current data points toward a breach of competitive principles.

Executive Vice Chairman Tunji Bello emphasized that the review is part of the Commission’s statutory mandate to safeguard consumers. The FCCPC is now examining potential violations of the Federal Competition and Consumer Protection Act 2018, specifically sections addressing the abuse of dominant positions and price-fixing. Following the conclusion of the domestic review, the Commission will turn its focus to foreign airlines to address allegations of discriminatory pricing on international routes.

WHAT’S BEING SAID

• “This assessment is intended to provide clarity on pricing behaviour… the Commission’s role is to ensure that market outcomes remain consistent with competition and consumer protection principles,” stated Mr. Tunji Bello.
• The report highlights that: “Differences observed in fares appear to reflect airlines’ arbitrary pricing decisions… rather than any variation in regulatory fees.”
• Regarding the next phase: “Foreign airlines will come under FCCPC radar… in view of widespread complaints of exploitative fares.”

WHAT’S NEXT

• The FCCPC will conduct further route-level reviews before finalizing the report and determining if enforcement steps are necessary.
• Based on the final findings, the Commission may issue new guidelines to prevent arbitrary price hikes during future peak travel periods.
• Investigation into foreign carriers will commence shortly to compare Nigerian ticket costs with those of neighboring regional hubs.

BOTTOM LINE

The Bottom Line is that the FCCPC is taking a firm stance against perceived collusion in the aviation sector. By identifying specific instances where ticket prices jumped by over N400,000 without a corresponding rise in operating costs, the Commission aims to reset the domestic market and ensure fair dealing for Nigerian travelers.