FCCPC Airline Price Manipulation review finds festive fares surged despite stable costs, raising concerns over competition and consumer protection

The Federal Competition and Consumer Protection Commission has uncovered patterns of alleged price manipulation by some domestic airlines during the December 2025 festive season, heightening concerns about consumer exploitation and market competition in Nigeria’s aviation sector.

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The findings were contained in an interim report released on Thursday by the commission’s Department of Surveillance and Investigations following an industry-wide probe announced in January.

According to the FCCPC Airline Price Manipulation review, preliminary analysis of data obtained from local carriers showed that ticket fares during the festive peak were materially higher than post-peak levels recorded in January 2026.

This was despite relative stability in critical operating variables such as aviation fuel prices, government taxes and foreign exchange rates.

In a statement signed by the Director of Corporate Affairs, Ondaje Ijagwu, the commission said the forensic exercise compared domestic pricing trends during the December rush with subsequent fare levels across multiple routes.

The report indicated that observed fare differences appeared to reflect discretionary pricing decisions, including yield management and capacity allocation, rather than external cost pressures.

Route-level analysis showed that fare increases coincided with reduced seat availability during predictable seasonal demand peaks, suggesting deliberate supply constraints.

On certain corridors, such as Abuja to Port Harcourt, peak fares were reported to be several times higher than post-peak levels, with differences reaching approximately N405,000 for a single ticket.

While acknowledging that seasonal demand, fleet utilisation and scheduling constraints could affect pricing during peak periods, the commission said these factors remain under review as part of its ongoing assessment.

Speaking on the development, the Executive Vice Chairman and Chief Executive Officer of the commission, Tunji Bello, described the review as part of the agency’s statutory mandate to promote competition and protect consumers.

“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,” Bello said.

He stressed that the report remains interim and that deeper structural and route-level analyses would be conducted before any regulatory action is taken.

The commission identified potential breaches of provisions of the Federal Competition and Consumer Protection Act 2018, including sections relating to anti-competitive agreements, abuse of dominance, price-fixing and unfair contract terms.

Bello also disclosed that the probe would be extended to international airlines amid complaints that Nigerians pay higher fares compared to travellers in neighbouring countries on similar routes.

Responding, spokesperson for the Airlines Operators of Nigeria, Prof Obiora Okonkwo, criticised the commission’s findings, arguing that the agency lacks the technical expertise to assess airline pricing models.

Okonkwo said the FCCPC’s actions could undermine the survival of domestic carriers, adding that airfare pricing is influenced by complex operational realities including fleet capacity, maintenance costs and foreign exchange constraints.

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The FCCPC Airline Price Manipulation investigation is expected to shape future regulatory engagement in the aviation sector as authorities weigh consumer protection against commercial sustainability in a challenging operating environment.