A recent review by the Federal Competition and Consumer Protection Commission (FCCPC) has revealed patterns of price manipulation by some domestic airlines during the 2025 Christmas festive period.
The Commission’s interim report, released on Thursday by its Department of Surveillance and Investigations, flagged instances of fare increases that appear unrelated to operational costs, suggesting possible price-fixing practices.
The findings were detailed in a statement signed by Ondaje Ijagwu, Director of Corporate Affairs at the FCCPC.
Investigation Background
The FCCPC launched an industry-wide investigation in January 2026, collecting data from airlines operating domestic routes across Nigeria. The study compared ticket prices during the December 2025 peak travel season with fares in the post-peak period of January 2026.
Preliminary analysis shows that fares during the festive season were significantly higher than post-peak rates, even though key operating costs such as fuel, taxes, and exchange rates remained relatively stable.
According to the report, the fare differences appear driven by airlines’ arbitrary pricing decisions, including yield management and capacity allocation, rather than regulatory changes.
Key Findings
- Route-level analysis indicated that higher fares coincided with periods of reduced seat availability during predictable seasonal demand peaks.
- On major corridors like Abuja–Port Harcourt, peak season fares were several times higher than post-peak rates, with single-ticket differences reaching approximately ₦405,000.
- Median fares across sampled routes rose sharply during the festive window compared with post-peak benchmarks.
The report also notes that seasonal demand pressures, scheduling constraints, and fleet utilization may influence pricing and remain under consideration as part of the ongoing review.
FCCPC Response
Mr. Tunji Bello, Executive Vice Chairman and CEO of the FCCPC, stated that the review is part of the Commission’s mandate to ensure competitive markets and protect consumers.
“This assessment is aimed at clarifying pricing behaviour during peak travel periods,” Mr. Bello said. “Our role is not to hinder legitimate business activity but to ensure market outcomes align with competition and consumer protection laws.”
He added that further structural and route-level analyses are underway before final conclusions are drawn. “This is an interim report. Once the review is complete, the Commission will decide whether any regulatory guidance or enforcement action is required under the law,” Mr. Bello noted.
Legal Context
The report references sections of the Federal Competition and Consumer Protection Act 2018, including provisions prohibiting agreements that restrain competition, abuse of dominant position, price-fixing, unfair contracts, and conspiracies to commit offences under the Act.
Mr. Bello also indicated that foreign airlines may come under scrutiny following the ongoing review of domestic operators, citing complaints about disproportionately high fares on certain international routes.
