The Federal Competition and Consumer Protection Commission (FCCPC) says it is probing ticket pricing templates used by some domestic airlines, following rising public complaints about sharp increases on certain routes.
On December 1, 2024, the FCCPC announced plans to
investigate complaints of exploitative practices in the aviation sector.
In a statement on Friday, Ondaje Ijagwu, director of
corporate affairs at the FCCPC, said concerns have intensified in recent days
over what many believe to be coordinated fare manipulation or exploitation —
particularly on routes in the south-east and south-south — as the festive
season begins.
He said the ongoing probe is focused on operators serving
the affected routes.
“Earlier in the year, a major airline, Air Peace, instituted
a court action seeking to restrain the commission from examining its pricing
mechanisms, following the commencement of an investigation into its pricing
model after widespread complaints from members of the public,” Ijagwu said.
“The ongoing inquiry is without prejudice to the case
instituted against the commission by Air Peace.
“Section 17(b) of the FCCPA empowers the Commission to
monitor economic activities in Nigeria to identify anti-competitive,
anti-consumer protection and restrictive practices that may adversely affect
consumers.
“Section 17(e) enables the Commission to carry out
investigations considered necessary.”
‘FCCPC NOT PRICE CONTROL BOARD’
Also speaking, Tunji Bello, the executive vice-chairman and
chief executive officer (CEO) of the FCCPC, said the agency’s mandate is clear.
“For the avoidance of doubt, we are not a price control
board. But the FCCPA 2018 empowers us to check the exploitation of consumers,”
Bello was quoted as saying.
“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 commission will act decisively wherever
evidence shows that consumer welfare or market competitiveness is being
undermined.
Citing the “arbitrary spike” in fares, the commission said
it is widening its review of pricing patterns, the justification for recent
increases, and any practices that may undermine fair competition.
The FCCPC added that it will impose enforcement actions if
breaches of the Act are established.
The commission promised that further updates on the ongoing
aviation sector investigation will be provided in due course.
The senate had summoned Festus Keyamo, minister of aviation
and aerospace development, and key industry stakeholders for an urgent meeting
over the sharp rise in domestic airfares.
Keyamo had blamed the high airfares on aircraft scarcity and
insufficient maintenance infrastructure in the country.
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