Federal Competition and Consumer Protection Commission (FCCPC) has expanded its ongoing investigation into airline ticket pricing following mounting public complaints over what many passengers describe as exploitative and arbitrary fare increases on some domestic routes.
The commission in a statement issued by the Director, Corporate Affairs, Ondaje Ijagwu , said the widened probe will examine the pricing templates used by certain airlines, particularly on routes within the South-East and South-South, as the festive travel season gathers momentum.
According to the FCCPC, concerns have grown in recent days over “what appears to be coordinated manipulation or exploitation in the pricing of airline tickets by some airlines on certain routes,” prompting the decision to broaden the scope of the investigation. Operators plying the affected routes are now firmly within the focus of the inquiry.
The Commission recalled that earlier in the year, one of the country’s major carriers, Air Peace, filed a suit seeking to restrain the FCCPC from scrutinising its pricing mechanisms. That legal action followed the Commission’s decision to open an investigation into the airline’s pricing model after widespread complaints from members of the public.
FCCPC, however, clarified that the current investigation is proceeding “without prejudice to the case instituted against the Commission by Air Peace.”
Explaining the Commission’s mandate, the Executive Vice Chairman and Chief Executive Officer, Mr Tunji Bello, stressed that the FCCPC is not in the business of fixing prices but will act decisively where consumer exploitation is suspected.
“For the avoidance of doubt, we are not a price control board,” Bello said. “But the FCCPA 2018 empowers us to check the exploitation of consumers. When we receive petitions or where we find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise.”
He added that the Commission would not hesitate to intervene where market practices threaten consumer welfare or undermine fair competition.
Under Section 17(b) of the Federal Competition and Consumer Protection Act (FCCPA), the Commission is empowered to monitor economic activities in Nigeria in order to identify anti-competitive, anti-consumer and restrictive practices that may harm consumers. Section 17(e) further authorises the FCCPC to carry out investigations it considers necessary.
While reiterating that it does not regulate prices, the Commission noted that fair pricing remains a central objective of the Act. The FCCPA, it explained, provides a broad framework to protect consumers from excessive, opaque, misleading or collusive pricing, while promoting competitive markets where prices are determined by fair market forces.
In light of the reported fare spikes, the FCCPC said it is extending its review to include pricing patterns, the justification for the increases reported by travellers, and any conduct that could distort competition in the aviation sector. Where violations are established, the Commission said it would apply appropriate enforcement measures.
The FCCPC assured Nigerians that updates on the aviation pricing investigation would be communicated in due course.