Regulator’s interim report links festive airfare spikes to possible arbitrary pricing as structural review of domestic carriers intensifies….
The Federal Competition and Consumer Protection Commission says it has uncovered patterns suggesting possible price manipulation by some domestic airlines during the December 2025 festive season, with fare differences on certain routes rising by as much as N405,000.
The findings are contained in an interim report issued by the commission’s Department of Surveillance and Investigations and made public on Thursday, according to a statement by Ondaje Ijagwu, the agency’s Director of Corporate Affairs.
The commission had in December launched an industry-wide probe following widespread complaints from travellers over sharp increases in ticket prices during the peak holiday period.
‘Materially Higher’ Peak Fares
According to the interim report, a comparative review of ticket prices during the December peak and the post-peak period in January 2026 shows that festive fares were “materially higher” across multiple routes.
“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 report stated.
The FCCPC noted that the pricing gaps appear to reflect “arbitrary pricing decisions,” including yield management strategies and capacity allocation choices, rather than adjustments driven by regulatory charges or input cost volatility.
On certain high-traffic corridors including Abuja–Port Harcourt, the commission observed that peak fares were clustered within narrow price bands across several operators, a trend it said is undergoing structural analysis.
“For instance, on certain corridors like Abuja-Port Harcourt, peak fares were several times higher than corresponding post-peak levels,” the report said, adding that on selected routes, the price difference for a single ticket reached approximately N405,000.
Legal Provisions Under Review
While acknowledging that seasonal demand, scheduling pressures and fleet utilisation can legitimately affect pricing during high-demand periods, the commission said those justifications are being carefully examined.
The FCCPC indicated that several provisions of the Federal Competition and Consumer Protection Act 2018 — including sections relating to restraint of competition, abuse of dominance, price-fixing, conspiracy, unfair contract terms and fair dealing — may be relevant depending on the outcome of its review.
‘Report Not Final’
Commenting on the interim findings, the Executive Vice-Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, stressed that the assessment is not final.
He said further route-level and structural analyses are ongoing and that any regulatory action would depend strictly on the facts established at the conclusion of the exercise.
“This assessment is intended to provide clarity on pricing behaviour during predictable peak travel periods,” Bello said.
“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.
“Our next action will be dictated by full facts established at the end of the review exercise. Then, the Commission will decide whether any regulatory guidance, engagement or enforcement steps are necessary, strictly in accordance with the law.”
Bello added that foreign airlines would also be examined after the domestic review is concluded, citing complaints that some international carriers allegedly charge Nigerian passengers higher fares on comparable routes than those offered in neighbouring countries.
The commission’s final report is expected to determine whether the December fare spikes were the result of legitimate market dynamics or conduct that breaches competition and consumer protection laws.
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