Domestic Airlines Clash With Regulator Over Price Fixing Claims
The battle between Nigeria’s aviation sector and its competition regulator has escalated following a damning interim report. The Federal Competition and Consumer Protection Commission (FCCPC) claims it has uncovered patterns of “price manipulation” among domestic airlines during the 2025 festive season. In response, the Airline Operators of Nigeria (AON) has dismissed the findings as the work of an agency that “lacks the professional expertise” to understand the industry. The regulator alleges that fares were arbitrarily hiked by more than 130% on certain routes despite stable operating costs.
The FCCPC’s investigation, conducted by its Department of Surveillance and Investigations, used data from December 2025 and January 2026. The report found that on high-density routes, such as the Abuja–Port Harcourt corridor, fares reached as high as N405,000 for a single economy ticket. According to the commission’s Director of Corporate Affairs, Ondaje Ijagwu, these spikes occurred while aviation fuel prices and foreign exchange rates remained relatively flat. The regulator argues this suggests “arbitrary pricing decisions” rather than a reflection of external economic pressures.
AON spokesperson, Professor Obiora Okonkwo, was blunt in his rebuttal. He stated that the FCCPC is “playing to the gallery” and warned that its interference is “detrimental to the survival” of local carriers. Okonkwo argued that the commission fails to grasp the complexities of “yield management”, the system where airlines vary seat prices based on demand to achieve a break-even point. He noted that while one passenger may pay N400,000, others on the same flight might have booked for N150,000. For the operators, the high fares at the peak are a necessary offset for lower-yield periods.
The regulator’s analysis also highlighted a concerning trend of “clustered” pricing. On some high-density routes, peak fares across multiple airlines fell within a very narrow range. The FCCPC is reviewing this as a potential sign of coordinated behaviour, which is prohibited under the 2018 Competition Act. Under these laws, price-fixing or “cartel” behavior can lead to severe penalties. The commission insists its role is not to disrupt business but to ensure that “market outcomes remain consistent with consumer protection.”
Domestic operators maintain that the cost of doing business in Nigeria is uniquely punishing. Okonkwo pointed to high interest rates and the expense of importing spare parts as primary drivers of ticket costs. He reminded the public that airlines are not charities and must service aircraft to international standards regardless of local economic conditions. From the operators’ perspective, the FCCPC is focusing on the symptom, high prices, while ignoring the systemic causes that make flying in Nigeria an expensive venture.
The standoff is set to move into a more formal phase as the FCCPC continues its structural review. Executive Vice Chairman Tunji Bello has signaled that foreign carriers will be the next target of the commission’s scrutiny. Many Nigerians have complained that international flights from Lagos are significantly more expensive than those from neighbouring West African capitals. As the regulator sharpens its focus, the aviation industry faces a period of intense transparency.