- The Federal Competition and Consumer Protection Commission (FCCPC) uncovered alleged arbitrary airfare hikes by domestic airlines during the December 2025 festive season
- The interim report finds ticket prices surged despite stable fuel costs, taxes, and forex rates
- FCCPC cites potential breaches of the Federal Competition and Consumer Protection Act 2018
The Federal Competition and Consumer Protection Commission (FCCPC) has revealed what it described as patterns of arbitrary fare increases by some domestic airlines during the December 2025 festive season, heightening concerns about consumer exploitation and competition within Nigeria’s aviation industry.
The findings were contained in an interim report issued on Thursday, February 26, by the Commission’s Department of Surveillance and Investigations, following an industry-wide probe announced in January.
According to the report, an initial review of data obtained from domestic carriers showed that ticket prices during the festive peak were substantially higher than fares recorded in January 2026, even though major cost drivers such as aviation fuel prices, government taxes and foreign exchange rates remained relatively stable.
In a statement signed by the FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, the Commission said its forensic review examined pricing trends during the December travel rush and compared them with post-peak fare levels.
The statement read in part, “A review undertaken by the Federal Competition and Consumer Protection Commission has uncovered patterns of price manipulation perpetrated by some local airlines during the last festive season.
“The forensic exercise benefitted from data collated by the Commission from airlines operating local routes in the country. The report compares domestic airline pricing from the December 2025 festive period with post-peak January 2026 fare levels.
“Preliminary analysis indicates that fares recorded during the December peak were materially higher than those observed in the post-peak period across several routes, despite relative stability in critical operating variables like fuel price, government taxes and foreign exchange.
“The differences observed in fares therefore appear to reflect airlines’ arbitrary pricing decisions, including yield management and capacity allocation, rather than any variation in regulatory fees.”
The Commission’s route-specific analysis indicated that fare spikes often aligned with periods of reduced seat availability during predictable seasonal demand surges, suggesting the possibility of deliberate capacity constraints.
It further observed that on high-traffic routes, peak fares were frequently grouped within narrow price bands across multiple operators, a trend that could point to coordinated conduct.
“For instance, on certain corridors such as Abuja–Port Harcourt, peak fares were several times higher than corresponding post-peak levels. On selected routes, the difference in the price of a single ticket reached approximately N405,000,” the report stated.
The Commission also noted that median ticket prices across the routes studied rose sharply during the festive window compared to January benchmarks.
However, the FCCPC acknowledged that factors such as seasonal demand fluctuations, fleet utilisation levels and scheduling limitations may also influence pricing during peak periods, adding that “these factors remain under consideration as part of the Commission’s ongoing review.”
Commenting on the interim findings, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said the investigation aligns with the Commission’s statutory mandate to promote competition and safeguard 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 emphasised that the report is preliminary and that further structural and route-level analysis would determine the Commission’s next course of action.
“It is important to emphasise that this is an interim report. Our next action will be dictated by 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 added.
The report identified potential breaches of provisions under the Federal Competition and Consumer Protection Act 2018, particularly sections relating to anti-competitive agreements, abuse of dominant position, price-fixing and unfair contract terms.
It stated, “The report identifies the possible relevance of Sections 59, 72, 107, 108, 124 and 127 of the Federal Competition and Consumer Protection Act 2018, which respectively address the prohibition of agreements in restraint of competition, the prohibition of abuse of a dominant position, the offence of price-fixing, conspiracy to commit offences under the Act, the right to fair dealings, and the prohibition of unfair, unreasonable or unjust contract terms.”
Meanwhile, Bello disclosed that the Commission intends to widen its probe to cover international carriers operating in Nigeria, following recurring complaints that Nigerian passengers pay higher fares compared to travellers in neighbouring countries on similar routes.
“Following the ongoing review of domestic airlines, the Commission will also examine the pricing behaviour of foreign carriers operating in Nigeria. There have been persistent concerns that Nigerians pay higher fares on certain routes compared to countries of similar distance,” he said.
Airfare pricing has long been a contentious issue for Nigerian travellers, especially during peak festive seasons when demand rises sharply.
While airlines often cite fleet shortages, rising aviation fuel prices and operational bottlenecks as drivers of high fares, consumer advocates argue that some operators exploit predictable demand spikes by limiting seat supply and inflating ticket prices.
Nigeria’s aviation industry continues to grapple with aircraft shortages, high maintenance costs, foreign exchange constraints and infrastructure deficiencies, all of which have tightened capacity and intensified pressure on fares.
If enforcement measures follow, the FCCPC’s ongoing probe could significantly influence pricing transparency and competitive practices within the sector.
The development is part of broader regulatory efforts aimed at strengthening consumer protection and ensuring fair market conduct across key segments of the Nigerian economy.