FCCPC LAUNCHES EXPANDED INVESTIGATION INTO AIRFARE HIKES BY NIGERIAN AIRLINES

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By: Sefiu Ajape

Following recent nationwide outrage, the Federal Competition and Consumer Protection Commission (FCCPC) has announced an expanded investigation into the alleged arbitrary hike in airfares by several Nigerian airlines.

Concerns have been raised over the pricing templates behind the high ticket rates currently charged by some domestic carriers, particularly on local routes.

The Nigerian Senate recently deliberated extensively on the issue, calling for a comprehensive investigation, while lawmakers alleged serious exploitation of passengers by domestic airlines.

The alleged coordinated manipulation of ticket prices is said to be more pronounced during festive periods.

Addressing the issue, the FCCPC, in a statement issued on Friday by its Director of Corporate Affairs, Mr Ondaje Ijagwu, disclosed that the Commission had commenced an expanded probe to establish possible violations of extant laws.

According to the agency, the investigation targets airline operators on selected routes, including those in the South-East and South-South regions.

The Commission added that appropriate enforcement measures would be applied at the conclusion of the investigation where evidence reveals violations of the Federal Competition and Consumer Protection Act (FCCPA).

Ijagwu further explained that Air Peace had 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 public complaints.

He noted that the ongoing inquiry was without prejudice to the suit instituted against the Commission by the airline.

Quoting the Executive Vice Chairman of FCCPC, Mr Tunji Bello, Ijagwu said “the Commission would not hesitate to act where evidence showed that consumers welfare or market competitiveness were being undermined.

”For the avoidance of doubt, we are not a price control board but the FCCPAct 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.

”Given the arbitrary spike in airfares, the Commission is extending its review of pricing patterns, the basis for the increases reported by consumers, and any practices that could undermine fair competition.

”Where evidence confirms a breach of the Act, FCCPC will apply appropriate enforcement measures”, Bello said.