- Regulator smells signs of fare manipulation
- Airlines dismiss accusations
- AON plays airlines’ survival card in response
The stage appears set for a major clash between Nigeria domestic airlines and the Federal Competition and Consumer Protection Commission (FCCPC) over what is turning out to be the latter’s finding that airlines operating domestic flights in Nigeria may have fleeced passengers in the peak period between December 2025 and January 2026 when they raised air fares through the roof.
A report of an FCCPC investigation on what went down during the period has fingered the airlines of likely price manipulation, but it fell short of saying they had engaged in the anti-competition practice of price fixing. The regulator said it was going ahead to produce a final report that would show the extent of the anti-competition practices by the airlines.
But the airlines are already fighting back, dismissing the initial findings. Responding under the aegis of Airline Operators of Nigeria (AON), they have picked holes in the report of the FCCPC which found significant patterns of price manipulation by the domestic carriers during the December 2025 festive season.
Obiora Okonkwo, a professor and spokesperson for the airlines’ body, not particularly responding to the serious matter of price fixing accusation contained in the report, accused the FCCPC of possibly playing to the gallery as it does not know the economics of airlines and does not possess the professional expertise to dabble into how prices are fixed.
Admitting that he had not read the interim report of the FCCPC, Obiora said: “I have not read the details of the report but what the FCCPC is doing is very detrimental to the survival of domestic operators. They don’t know the economics of airlines and do not possess the professional expertise to dabble into how prices are fixed. They don’t understand airline operations and as far as the AON is concerned, they are playing to the gallery and should not be taken seriously. We have immense respect for all government agencies but we would not accept any statement not based on realities or facts,” Okonkwo said.
The AON position is seen as setting the stage for a major clash with the FCCPC, a market competition and consumer protection agency of the government, known to have issued big fines in the past against a number of firms operating in the Nigerian economy for falling foul of the law.
The FCCPC report was released on February 26, 2026, and the competition and consumer rights enforcer said that while it has not yet issued final fines, it has established a legal basis for significant penalties under the FCCPA 2018.
It concluded that while demand naturally spikes during holidays, the extreme fare hikes were “unjustified” by operational costs. However, airline operators said the claim is baseless.
FCCPC’s key findings of the interim report identified an arbitrary spike in ticket prices on certain routes in December 2025, materially higher than in January 2026, despite stable costs for aviation fuel, foreign exchange, and government taxes during that period.
On specific high-density routes, such as Abuja–Port Harcourt, the difference for a single ticket reached approximately ₦405,000 according to its findings.
The commission noted that on several high-traffic corridors, fares were clustered within narrow price bands across multiple operators, suggesting possible price-fixing or anti-competitive agreements.
It also noted that route-level analysis indicated that higher fares often coincided with deliberate supply constraints (reduced seat availability) during predictable peak periods.
The FCCPC highlighted potential violations of the Federal Competition and Consumer Protection Act 2018, specifically, Section 59 on Prohibition of agreements in restraint of competition; Section 72, which deals with abuse of a dominant position and Sections 107 & 108, which deal with offences related to price-fixing and conspiracy.
“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 benefited 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,” read part of a statement by Ondaje Ijagwu, FCCPC director of corporate affairs.
The commission said it is conducting further route-level and structural analysis before making a final determination or taking enforcement actions.
Following the domestic review, the FCCPC plans to investigate international carriers after numerous complaints that Nigerians are charged higher fares than passengers in neighbouring countries for similar distances.
The commission announced that as soon as the domestic review is finished, the commission will turn its focus to international carriers regarding exploitative fares charged to Nigerians.
If the final report confirms illegal price-fixing, airlines could face heavy fines or regulatory mandates to adjust their pricing models.
