Government Widens Probe Into ‘Exploitative’ Airfares

The Federal Competition and Consumer Protection Commission (FCCPC) has expanded its ongoing investigation into what it describes as suspicious and potentially exploitative airfare hikes by some domestic airlines, particularly on routes across the South-East and South-South.

The move followed rising public anger over sudden spikes in ticket prices as Nigerians prepare for the Christmas and New Year migrations.

Many travellers allege that airlines appear to be coordinating prices in a manner that suggests manipulation, a claim the commission says warrants deeper scrutiny.
In a statement issued yesterday, the director corporate affairs, Ondaje Ijagwu, said the expanded probe would focus on operators along routes where consumers had reported unusual and parallel increases in fares. The commission noted that while it does not regulate or fix prices, the law empowers it to check anti-consumer and anti-competitive practices.

The latest development came months after Air Peace dragged the commission to court seeking to stop regulators from examining its pricing model, a move triggered by earlier consumer complaints. The FCCPC clarified that the ongoing investigation would continue “without prejudice” to the court case.

“For the avoidance of doubt, we are not a price control board,” the executive vice chairman/CEO, Tunji Bello, said, “But the FCCPA 2018 empowers us to check the exploitation of consumers.
When we receive petitions or find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise.”

The commission cited Sections 17(b) and 17(e) of the Federal Competition and Consumer Protection Act (FCCPA) which authorise it to monitor economic activities, identify collusive behavior, and undertake investigations necessary to protect consumer welfare and market competitiveness.

With airfare complaints surging nationwide, the FCCPC says it is now reviewing pricing templates, the basis for the spikes, and any actions that may undermine fair competition. The agency warned that any airline found culpable will face appropriate sanctions.

Further updates on the aviation sector investigation, the Commission said, will be provided in due course.