FCCPC Alleges Price Manipulation by Domestic Airlines Over Yuletide Airfares
Regulatory Scrutiny Intensifies as FCCPC Probes Festive Airfare Spikes
The Federal Competition and Consumer Protection Commission (FCCPC) has revealed preliminary findings indicating arbitrary pricing practices by some domestic airlines during the December 2025 festive travel period, following an industry-wide review of airfare trends. The disclosure marks a significant regulatory challenge for Nigeria’s aviation sector and underscores growing scrutiny of ticket pricing behaviour across high-demand travel windows.
Commission officials said complaints from the public prompted the investigation, which was launched in January and is focused on price stability, competition law and consumer protection principles.
Forensic Analysis Highlights Fare Deviations
According to the interim report released by the FCCPC’s Department of Surveillance and Investigations, pricing data obtained directly from airlines showed that airfares during the Yuletide period were substantially higher on several domestic routes compared with post-peak January fare levels, even though key cost drivers remained comparatively stable.
The Commission’s analysis identified patterns suggesting that pricing decisions were not fully explained by changes in input costs such as aviation fuel, government levies, scheduling constraints or foreign exchange fluctuations. Instead, the report noted that differences in fare levels across routes “appear to reflect airlines’ arbitrary pricing decisions, including yield management and capacity allocation,” the Commission said.
Route-level analysis highlighted examples where peak travel fares were clustered within narrow price bands across multiple carriers and reached significantly higher levels than observed outside the peak period. On certain corridors such as Abuja–Port Harcourt, individual ticket price differences reached approximately ₦405,000 between peak and post-peak periods.
Mandate and Consumer Protection Context
FCCPC Executive Vice Chairman and CEO, Mr Tunji Bello, emphasised that the Commission’s mandate is to promote competitive markets and protect consumers under the Federal Competition and Consumer Protection Act 2018. The law prohibits practices such as price fixing, abuse of dominance and unjust contract terms that restrain competition or harm consumer interests.
“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.
The interim nature of the report reflects ongoing analysis, with the FCCPC indicating that its next steps will be informed by a more comprehensive review of structural and route-level pricing behaviours.
Industry Response and Ongoing Review
Industry stakeholders have begun to respond to the FCCPC’s assertions. Representatives of the Airline Operators of Nigeria (AON) have raised objections, arguing that the Commission lacks specialised knowledge of the economics of airline operations and that pricing decisions reflect complex cost structures rather than arbitrary manipulation.
The Nairametrics and Independent reports confirm that while the Commission’s findings point to significant airfare increases not tied to typical cost drivers, seasonal demand pressures, fleet utilisation and scheduling constraints remain under continued examination as part of the ongoing probe.
Moreover, after concluding its review of domestic carriers, the FCCPC has indicated that foreign airlines operating in Nigeria may also fall under future scrutiny following complaints of comparatively higher fares on similar regional routes.
Consumer Impact and Market Signals
For consumers and business travellers, the reported airfare patterns highlight enduring concerns over price volatility during festive travel peaks, which can significantly increase travel costs without transparent justification. The situation underscores the broader challenge of ensuring fair pricing practices in essential transport markets where seasonal demand naturally fluctuates.
From a policy perspective, the FCCPC’s interim findings are likely to inform ongoing debates about regulatory mechanisms that balance competitive market dynamics with consumer protection, particularly in sectors where capacity constraints and demand surges occur predictably.
Conclusion: Regulatory Scrutiny Ahead
The FCCPC’s interim report signalling evidence of price manipulation by some domestic airlines during the Yuletide travel window represents a noteworthy development in Nigeria’s regulatory oversight of the aviation sector. As the investigation continues and stakeholder responses unfold, market participants and policymakers will be closely watching subsequent findings and any potential enforcement actions.
The Commission’s emphasis on adherence to competition principles reflects its broader mandate to safeguard consumer interests while maintaining a fair and competitive commercial environment. The final outcome of the full review may yield important precedents for how airline pricing behaviour is monitored and regulated in the Nigerian context.
