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FCCPC Uncovers Alleged Price Fixing by Local Airlines

The Federal Competition and Consumer Protection Commission (FCCPC) has uncovered what it describes as patterns of price manipulation by some domestic airlines during the December 2025 festive season.
The findings are contained in an interim report released on Thursday by the Commission’s Surveillance and Investigations Department, following an industry-wide probe announced in January.
According to the report, a comparative analysis of ticket fares during the December peak travel period and the post-peak period of January 2026 revealed significant price disparities across several domestic routes. The Commission noted that fares during the festive window were materially higher than those recorded after the peak season, despite relative stability in key cost drivers such as aviation fuel prices, government taxes and foreign exchange rates.
The FCCPC said the observed fare increases appear to reflect what it described as “arbitrary pricing decisions,” including yield management strategies and capacity allocation, rather than fluctuations in regulatory fees.
Route-level analysis showed that higher fares often coincided with periods of reduced seat availability during predictable seasonal demand surges. On some high-density routes, peak fares were found to be clustered within narrow price bands across multiple operators.
For example, on routes such as Abuja–Port Harcourt, peak fares were reported to be several times higher than corresponding post-peak levels. On certain corridors, the difference in the price of a single ticket reached approximately ₦405,000. Median fares across sampled routes also rose sharply during the festive period compared to post-peak benchmarks.
However, the Commission acknowledged that seasonal demand pressures, scheduling limitations and fleet utilisation challenges could also influence ticket pricing during peak travel periods. These factors, it said, remain under review as part of the ongoing investigation.
Commenting on the interim findings, FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the review forms part of the Commission’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 stated.
He emphasised that the report is preliminary and that further structural and route-level analysis is ongoing before any conclusions are reached.
“Our next action will be dictated by the full facts established at the end of the review exercise. The Commission will then decide whether any regulatory guidance, engagement or enforcement steps are necessary, strictly in accordance with the law,” he added.
The interim report cited possible breaches of several provisions of the Federal Competition and Consumer Protection Act 2018, including sections dealing with agreements in restraint of competition, abuse of dominant position, price-fixing, conspiracy, and unfair or unjust contract terms.
Meanwhile, the FCCPC disclosed that foreign airlines operating in Nigeria will also be investigated after the review of domestic carriers. The Commission said the move follows widespread complaints that some international airlines charge Nigerian passengers significantly higher fares on certain routes compared to similar routes in neighbouring countries of comparable distance.
The investigation is expected to continue in the coming weeks as the Commission finalises its review.

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