By Our Reporter
The Federal Competition and Consumer Protection Commission (FCCPC) has opened an investigation into recent airfare hikes on select domestic routes in Nigeria’s South-South and South-East regions.
The move followed growing public complaints over sharp price increases as the festive travel season begins.
The disclosure was contained in a statement issued at the weekend by FCCPC’s Director of Corporate Affairs, Ondaje Ijagwu, who said the probe focuses on pricing templates used by some airlines on the affected routes to determine whether they breach consumer protection or competition laws.
According to the commission, concerns have been raised over what appears to be coordinated or exploitative pricing by some airlines, particularly on routes linking the South-East and South-South to other parts of the country. The FCCPC said the ongoing inquiry targets operators on the identified routes.
“Following public inquiries, the Federal Competition and Consumer Protection Commission (FCCPC) today announced an expansion of the scope of the existing investigation into pricing templates behind rates charged for tickets by some airlines on some domestic routes with a view to establishing possible violations of the provisions of the law.
“Concerns have been expressed widely in the past few days over what appears to be coordinated manipulation or exploitation in the pricing of airline tickets by some airlines on certain routes, especially in the South-East and South-South, as the festive season begins”, the statement read in part.
The commission clarified that it is not a price control body but is empowered under the Federal Competition and Consumer Protection Act (FCCPA) 2018 to intervene where pricing practices undermine consumer welfare or fair competition.
FCCPC Executive Vice Chairman and Chief Executive Officer, Tunji Bello, said the agency would act where evidence shows that consumers are being exploited.
The statement also referenced an earlier legal action instituted by Air Peace, which sought to restrain the FCCPC from examining its pricing mechanisms after the Commission commenced a similar investigation earlier in the year.
The FCCPC noted that the current inquiry is without prejudice to the pending court case.
Citing Sections 17(b) and 17(e) of the FCCPA, the Commission said it has the authority to monitor economic activities, investigate anti-competitive conduct, and address practices that may harm consumers.
It added that while prices are generally determined by market forces, the law prohibits excessive, opaque, misleading, or collusive pricing.
The FCCPC said it is reviewing the basis for the reported airfare increases and pricing patterns on the affected routes and will apply appropriate enforcement measures where violations are established. The Commission said further updates would be provided in due course.
There have been complaints over the cost of booking flights to the South-East and South-South, as demand rises ahead of the Christmas travel period.
In some cases, passengers reportedly purchased ticket for N370,000 to N400,000, triggering public outcry.