UPDATED: We have evidence of airfare manipulation by domestic airlines – FCCPC

Your actions detrimental to airlines’ survival, AON fires back

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By Chinelo Obogo

The Federal Competition and Consumer Protection Commission (FCCPC) has said that it found credible evidence that domestic airlines engaged in price manipulation during the December 2025 festive season.

In the interim report, which was released by the FCCPC on Thursday, domestic airlines were accused by the Commission’s Surveillance and Investigations department of raising fares by amounts far beyond what operating costs alone could justify.

The FCCPC said it collected its data directly from the airlines operating domestic routes across the country, charged and compared ticket prices during the December 2025 peak travel window with fares recorded in the post-holiday period in January 2026.

The cost of airfares rose sharply during the festive season on multiple routes, as the Commission says the fact that there was no increase in taxes, forex or aviation fuel points not to legitimate reasons but to deliberate decisions to increase fares by the airlines themselves and the deliberate restriction of available seat capacity at critical travel periods.

The Commission cited the Abuja-Port Harcourt route as an example of high pricing, with fares during the peak period reaching double what the same journey cost just weeks later. It said that on selected routes, the price difference for a single ticket reached approximately ₦405,000.

The Commission acknowledged in its report that some fare variation during peak seasons is normal in airline operations. The Commission said that a seasonal surge in demand, aircraft availability, and scheduling challenges can push prices higher, but these factors, the FCCPC noted, are still being considered as the review continues. However, the regulator said that the scale and nature of the increase in prices is beyond what such explanations can reasonably account for.

The interim report flags several provisions of the Federal Competition and Consumer Protection Act (FCCPA) 2018 as potentially relevant to the conduct identified. These include Section 59, which prohibits agreements in restraint of competition; Section 72, which bars the abuse of a dominant market position; Section 107, which specifically makes price-fixing a criminal offence; Section 108, which addresses conspiracy to commit offences under the Act; Section 124, which protects consumers’ right to fair dealings; and Section 127, which prohibits unfair, unreasonable, or unjust contract terms.

The Commission said it is keeping multiple enforcement options open as it moves towards a final determination.

Speaking on the release of the report, FCCPC Executive Vice Chairman and Chief Executive Officer Tunji Bello described the review as part of the Commission’s mandate to promote competitive markets and protect consumers from exploitation.

“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.

“It is important to emphasise that this is an interim report. Our next action will be dictated by the full facts established at the end of the review exercise. Then, the Commission will decide whether any regulatory guidance, engagement or enforcement steps are necessary, strictly in accordance with the law,” he said.

Mr. Bello said further structural and route-level analysis is still being conducted before the Commission reaches any definitive conclusions, suggesting that the final report could carry significantly heavier consequences for airlines found to have violated the law.

Bello also announced that foreign airlines will be the next target of the FCCPC’s scrutiny. He cited widespread public complaints about the fares that foreign carriers charge Nigerian passengers on certain international routes, fares that are reportedly far higher than what passengers in neighbouring countries pay for journeys of the same distance.

Responding to FCCPC’s report, the spokesperson of the Airline Operators of Nigeria (AON), Prof. Obiora Okonkwo, said the Commission doesn’t have the professional expertise to dabble into airline operations and that their actions are detrimental to the survival of domestic operators.

“I have not read the details of the report, but what the FCCPC is doing is very detrimental to the survival of domestic operators. They don’t know the economics of airlines and do not possess the professional expertise to dabble in how prices are fixed. They don’t understand airline operations, and as far as the AON is concerned, they are playing to the gallery and should not be taken seriously. We have immense respect for all government agencies, but we would not accept any statement not based on realities or facts,” Okonkwo said.