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From Fred Ezeh, Abuja
The Federal Competition and Consumer Protection Commission (FCCPC) has announced the decision to investigate the rationale behind the sudden hike in airfares by airline operators as the Yuletide peaks. The commission described the hike as exploitative to Nigeria air passengers particularly those on the South-East and South-South routes who are mostly affected by the decision of the airline operators.
Ondaje Ijagwu, Director, Corporate Affairs, FCCPC, in a statement on Friday, said the commission is expanding the scope of existing investigation into pricing templates behind rates charged for tickets by some airline operators on some domestic routes with a view to establishing possible violations of the provisions of the law.
He said: “Concerns have been expressed widely in the past few days over what appears to be coordinated manipulation or exploitation in the pricing of airline tickets by some airline operators on certain routes, especially in the South-East and South-South, as the festive season begins. However, the ongoing investigation targets operators on the identified routes.”
He recalled that earlier in the year, a major airline, Air Peace, instituted a court action seeking to restrain the commission from examining its pricing mechanisms following the commencement of an investigation into its pricing model after widespread complaints from members of the public. However, the ongoing inquiry is without prejudice to the case instituted against the commission by Air Peace.”
Meanwhile, the FCCPC Executive Vice Chairman, Mr Tunji Bello, clarified that though FCCPC is not a price control board, the FCCPA 2018 empowers the commission to check the exploitation of consumers. “So, 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 emphasised that the commission will not hesitate to act where evidence shows that consumer welfare or market competitiveness is being undermined.
“Section 17(b) of the FCCPA empowers the commission to monitor economic activities in Nigeria with a view to identifying anti-competitive, anti-consumer protection and restrictive practices that may adversely affect consumers. Section 17(e) which enables the Commission to carry out investigations also considered it necessary.
“Although the commission is not a price control body, fair pricing is a core objective of the FCCPA. The Act establishes a comprehensive framework that protect consumers from excessive, opaque, misleading, or collusive pricing practices while promoting competitive markets that deliver products and services at prices determined through fair market dynamics.
“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.”
He assured the public that the commission will continue to provide further updates on the ongoing aviation investigation in due course.
