FCCPC Uncovers Evidence of Alleged Price Fixing by Domestic Airlines

A review conducted by the Federal Competition and Consumer Protection Commission (FCCPC) has revealed patterns suggestive of price manipulation by some domestic airlines during the last festive season.
The details are contained in an interim report issued on Thursday by the Commission’s Surveillance and Investigations Department.

The Commission had earlier in January announced a sector-wide probe into airline pricing practices.
The forensic review was supported by data gathered from airlines operating domestic routes across the country.
According to the report, a comparison was made between domestic ticket prices during the December 2025 festive rush and fare levels recorded in the post-peak period of January 2026.
Preliminary findings show that ticket prices during the December peak were significantly higher than those recorded after the season across multiple routes, despite relative stability in key operational cost drivers such as aviation fuel prices, government taxes, and foreign exchange rates.
The report therefore suggests that the observed fare increases may have stemmed from airlines’ discretionary pricing decisions, including yield management strategies and capacity allocation, rather than changes in regulatory charges.
An analysis at route level indicates that higher fares corresponded with periods of reduced seat availability during predictable seasonal demand surges. On some busy routes, peak fares were concentrated within close price bands across different operators.
For example, on routes such as Abuja–Port Harcourt, festive fares were several times higher than post-peak prices. On certain routes, the price gap for a single ticket reached about ₦405,000. Median fares across the reviewed routes also rose sharply during the festive window compared to post-peak benchmarks.
Nonetheless, the interim report acknowledges that seasonal demand pressures, scheduling limitations, and fleet utilisation challenges may also influence pricing during peak travel periods.
These considerations, the Commission said, are still being examined as part of the ongoing review.
Reacting to the release of the interim findings, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Mr. Tunji Bello, stated that the exercise aligns with the Commission’s statutory mandate to foster competitive markets and protect consumers.
He explained that the assessment seeks to shed light on pricing conduct during predictable high-demand travel periods, adding that the Commission’s intention is not to interfere with legitimate commercial operations but to ensure that market outcomes comply with competition and consumer protection laws.
Mr. Bello further emphasised that additional structural and route-specific analyses are underway before any final determination is made.
He stressed that the document remains an interim report, noting that subsequent steps will depend on the full facts established at the conclusion of the review. The Commission will then decide whether regulatory guidance, stakeholder engagement, or enforcement measures are warranted, strictly within the framework of the law.
The report highlights the potential applicability of Sections 59, 72, 107, 108, 124, and 127 of the Federal Competition and Consumer Protection Act 2018. These provisions address agreements that restrain competition, abuse of dominant position, price-fixing offences, conspiracy to commit offences under the Act, the right to fair dealings, and the prohibition of unfair, unreasonable, or unjust contract terms.
Meanwhile, Mr. Bello disclosed that foreign airlines will also come under the Commission’s scrutiny after the current review of domestic carriers. This follows widespread complaints that some international operators allegedly charge Nigerians exploitative fares on certain routes compared to similar-distance routes in neighbouring countries.