REGULATORY

FCCPC investigates Nigerian airlines over alleged airfare hikes on domestic routes

2 min read
FCCPC investigates Nigerian airlines over alleged airfare hikes on domestic routes
Nigeria's FCCPC expands its probe into alleged airfare price hikes by airlines on key domestic routes.

Key Points

  • 1Nigeria's FCCPC has expanded its investigation into alleged airfare price manipulation by airlines on South-East and South-South routes.
  • 2The probe follows widespread public complaints about coordinated exploitation in ticket pricing, particularly during the festive season.
  • 3The FCCPC, empowered by the FCCPA 2018, will apply enforcement measures if evidence confirms consumer exploitation or anti-competitive practices.

The Federal Competition and Consumer Protection Commission (FCCPC) in Nigeria has announced an expanded investigation into the pricing structures of airline tickets on the nation's South-East and South-South routes. This move follows widespread public complaints and concerns regarding what appears to be coordinated manipulation or exploitation in airfare pricing, particularly as the festive season commences. The regulatory body aims to ascertain if any provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018 have been violated by airlines operating these domestic routes.

This ongoing inquiry is distinct from a previous court action initiated by Air Peace, a major Nigerian airline, earlier in the year. Air Peace had sought to restrain the FCCPC from examining its pricing mechanisms after the commission began an investigation into its model. The FCCPC clarified that the current probe proceeds without prejudice to that existing legal case, underscoring its commitment to consumer protection regardless of prior disputes.

While the FCCPC asserts it is not a price control board, its Executive Vice Chairman/CEO, Mr. Tunji Bello, emphasized that the FCCPA 2018 empowers the commission to combat consumer exploitation. Citing Sections 17(b) and 17(e) of the Act, the FCCPC is authorized to monitor economic activities, identify anti-competitive and anti-consumer practices, and conduct necessary investigations. The Commission stated it would not hesitate to act if evidence confirms that consumer welfare or market competitiveness is being undermined by arbitrary airfare spikes. Appropriate enforcement measures will be applied if breaches are found, with further updates promised.

Topics

FCCPCNigeria AviationAirfare HikesConsumer ProtectionAirline CompetitionDomestic Flights

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