FCCPC to Probe Airline Pricing Model as Nigerians Protest Flight Ticket Hikes
- The FCCPC has said it will probe the pricing model of domestic airlines following their coordinated hike in airfares
- The commission says the investigation is focused on operators serving the southeast and south-south routes, where complaints are highest
- The probe follows a recent Senate summons to the aviation minister over rising domestic airfares, which the minister said may not be addressed due to the deregulation of the aviation sector
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Federal Competition and Consumer Protection Commission (FCCPC) has said it is going to investigate the ticket pricing models of domestic airlines following growing public complaints about sharp fare increases on several routes.
The commission had earlier announced, on December 1, 2024, that it would look into allegations of exploitative practices in the aviation sector.
In a statement issued on Friday, Ondaje Ijagwu, FCCPC’s Director of Corporate Affairs, said concerns have intensified in recent days, especially on routes in the south-east and south-south, where passengers have reported what they believe to be coordinated fare manipulation.
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According to Ijagwu, the probe is currently focused on operators servicing the affected corridors. He added that the issue of pricing has previously led to a legal challenge.
Earlier this year, Air Peace filed a court action seeking to prevent the FCCPC from reviewing its ticket pricing mechanisms after the commission began an inquiry following widespread consumer complaints.
Ijagwu noted that the ongoing investigation by the commission remains independent of that court case. Citing Sections 17(b) and 17(e) of the FCCPA 2018, he said the commission is empowered to monitor economic activities, identify anti-competitive practices and carry out investigations when necessary.
Speaking on the development, the FCCPC’s Executive Vice-Chairman and Chief Executive Officer, Tunji Bello, said the agency is not a price control board but is required by law to prevent consumer exploitation.
He stated that the commission will intervene whenever credible evidence suggests that consumers are being unfairly treated or that market competition is being undermined.
“For the avoidance of doubt, we are not a price control board. But the FCCPA 2018 empowers us to check the exploitation of consumers. When we receive petitions or where we find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise,” Bello said.
The statement added that updates on the aviation-sector investigation will be shared as the review progresses, and enforcement actions will be taken if any breaches are established.
Source: Twitter
The development comes as the Senate recently summoned Aviation Minister Festus Keyamo and key industry stakeholders over the rising cost of domestic flights.
Keyamo, who is yet to appear before the senate on the matter, spoke with pressmen at the State House, saying the federal government cannot fix prices of tickets due to the fact that the aviation sector is deregulated.
Nigerians lament
Many Nigerians have expressed their outrage on social media over the sharp hike in the prices of airfares. Legit.ng reported that most airlines increased fares by over 100 percent.
In a viral video on social media, an outraged lady described the hike as “wickedness”, calling for regulation of airlines and airfares.
She said:
“This Is Pure Wickedness And So Unfair. How Can a Flight Of Less Than 1 Hour Be N500k? This Is Exploitation And These Airlines Need To Be Regulated. With The High Level Of Insecurity On Our Roads, Now We Cannot Even Afford To Fly.”
Another Nigerian, Cynthia Uneke, said in a post on X:
“Do we not have anything like Price Control or Consumer Protection Agency in Nigeria cos what is this? If you add tax and booking fees, you will be paying 500k plus for less than one hour domestic flight economy ticket. This makes absolute no sense”
FCCPC probes MultiChoice, seals IKEDC
The FCCPC has recently taken some drastic actions against private corporations to protect consumers’ rights. Legit.ng reported that the commission sealed Ikeja Electric’s headquarters this week over alleged violation of customers' rights and non-compliance with multiple directives from the commission and the National Electricity Regulatory Commission (NERC)
It was also reported that the commission has filed a suit against the CEO of MultiChoice Nigeria, John Ugbe, and Adewunmi Ogunsanya, the company's chairman, along with several other senior officials, on charges related to the violation of the FCCPC Act of 2018.
The charges stem from their alleged refusal to cooperate with an FCCPC investigation into the company's price increase and anti-competitive conduct in the pay-TV sector.
Source: Legit.ng
