FCCPC, airline operators on collision course over price-fixing allegation

Business Pointers

By Seun Ibiyemi

Tension is mounting between the Federal Competition and Consumer Protection Commission (FCCPC) and airline operators in Nigeria following allegations of price-fixing in the country’s aviation sector.

The regulatory standoff began after the Federal Competition and Consumer Protection Commission (FCCPC) disclosed that it had received complaints alleging coordinated airfare increases among domestic carriers, prompting the Commission to initiate a preliminary inquiry. Also read: FCCPC uncovers alleged airline fare manipulation during festive season

The Chief Executive Officer of the commission, Mr. Tunji Bello, disclosed this in an interim report released on Thursday by the agency’s Department of Surveillance and Investigations.

The report, signed by Mr. Ondaje Ijagwu, Director of Corporate Affairs, followed an industry-wide investigation launched in January into alleged exploitative airfares on local routes.

Bello said the assessment was carried out in line with the commission’s statutory mandate to promote competitive markets and protect 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,” he said. Also read: Ikeja Court admits petition in Kuru N76bn Arik Air fruad trial

According to the interim findings, fares recorded during the December festive peak were significantly higher than those observed in the post-peak period of January 2026 across several routes.

This was despite relative stability in key cost drivers such as aviation fuel prices, government taxes and foreign exchange rates.

The report indicated that the fare differences appeared to reflect pricing strategies such as yield management and capacity allocation decisions rather than changes in regulatory fees.

Route-level analysis revealed that higher fares coincided with reduced seat availability during predictable seasonal demand surges. On some high-density routes, peak fares were reportedly clustered within narrow price bands across multiple operators.

The Abuja–Port Harcourt corridor was cited as one of the routes where peak fares were several times higher than post-peak levels.

In certain instances, the price difference for a single ticket rose to about N405,000, while median fares across sampled routes increased markedly during the festive window compared to post-peak benchmarks.

Bello acknowledged that seasonal demand pressures, scheduling constraints and fleet utilisation could influence pricing during peak periods, adding that these factors remained under review.

He stressed that the report was interim and that further structural and route-level analysis was ongoing before final conclusions would be drawn.

Meanwhile, the Airline Operators of Nigeria (AON) has criticised the Federal Competition and Consumer Protection Commission (FCCPC), saying the agency lacks the professional expertise to interfere in airline operations and pricing structures.

The spokesperson for the AON, Obiora Okonkwo said in a statement that the commission’s actions are detrimental to the survival of domestic carriers.

AON’s reaction follows the FCCPC’s claim that it uncovered credible evidence suggesting domestic airlines engaged in price manipulation during the December 2025 festive season.

Responding to the report, Okonkwo said, “What the FCCPC is doing is very detrimental to the survival of domestic operators. They do not understand the economics of airlines and do not possess the professional expertise to dabble in how prices are fixed.”

He insisted that the commission does not understand the complexities of airline operations and suggested that its claims were unfounded.

“We have immense respect for all government agencies, but we will not accept any statement that is not based on realities or facts,” Okonkwo said.

The disagreement underscores growing tensions between regulators and industry operators over pricing practices in Nigeria’s aviation sector

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