The Federal Competition and Consumer Protection Commission (FCCPC) has expanded its investigation into the pricing frameworks used by some domestic airlines, following growing public concern over sharp increases in airfares on selected routes, particularly in the South-East and South-South regions, as the festive season approaches.
In a statement issued on Thursday and signed by Ondaje Ijagwu, Director of Corporate Affairs, the Commission said it had received numerous complaints in recent days alleging what appears to be coordinated price manipulation or consumer exploitation by certain airlines.
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The ongoing probe, it added, specifically targets operators on the routes where fare hikes have been most pronounced.
Earlier in the year, major carrier Air Peace instituted legal action seeking to restrain the FCCPC from examining its pricing models. This followed a similar wave of consumer complaints that triggered an initial investigation into its fare structure. The Commission clarified that the current review remains unaffected by the pending court case.
Reaffirming the regulator’s mandate, Tunji Bello, Executive Vice Chairman/CEO, FCCPC, emphasised that the Commission is not a price control body but is fully empowered under the Federal Competition and Consumer Protection Act (FCCPA) 2018 to prevent consumer exploitation.
“For the avoidance of doubt, we are not a price control board. But the FCCPA empowers us to check the exploitation of consumers. When we receive petitions or find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise,” he stated.
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Bello reiterated that the Commission would act decisively where evidence indicates that consumer welfare or market competitiveness is being compromised. Sections 17(b) and 17(e) of the FCCPA empower the FCCPC to monitor economic activities, identify anti-competitive or restrictive practices, and conduct investigations as necessary.
The Commission noted that while it does not set prices for goods or services, fair pricing remains a core principle of the FCCPA. The Act provides safeguards against excessive, opaque, misleading, or collusive pricing, ensuring that market forces, not manipulative practices, determine the cost of services.
With consumer reports pointing to arbitrary fare spikes, the FCCPC said it is expanding its review of pricing patterns, the rationale for the increases, and any potential practices that could distort competition. Should violations of the Act be established, the regulator said it will impose appropriate enforcement measures.
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The Commission assured the public that further updates on the aviation sector investigation will be provided in due course.
“Given the arbitrary spike in airfares, the Commission is extending its review of pricing patterns, the basis for the increases reported by consumers, and any practices that could undermine fair competition. Where evidence confirms a breach of the Act, FCCPC will apply appropriate enforcement measures,” the statement added
