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Arbitrary Increases in Domestic Flight Fares: Need for Legislative Oversight to Safeguard Competition and Consumer Protection

dc.contributor.authorObot, Etimbuk
dc.contributor.authorUdom, Martins
dc.contributor.authorNandi, Livinus
dc.date.accessioned2026-09-28T12:17:24Z
dc.date.available2026-09-28T12:17:24Z
dc.date.issued2026-03
dc.identifier.urihttps://ir.nilds.gov.ng//handle/123456789/3623
dc.description.abstractOn 27 February 2026, the Federal Competition and Consumer Protection Commission (FCCPC) released an interim report following its review of domestic airline pricing during the December 2025 festive peak and the post-peak period of January 2026. The Commission’s preliminary findings indicate that fares during the festive window were materially higher across multiple routes despite relative stability in key operating variables such as aviation fuel prices, government-imposed taxes, and foreign exchange rates. According to the FCCPC, the observed differences were not attributable to regulatory fee adjustments but instead reflected airline pricing decisions, including yield management practices and capacity allocation strategies. The interim report identified significant fare disparities on certain high-density routes. On the Abuja–Port Harcourt route, for example, peak fares reportedly differed from post-peak fares by as much as ₦405,000 for a single ticket. Median fares across sampled routes increased markedly during the festive period compared to January benchmarks. The Commission referenced the possible applicability of Sections 59, 72, 107, 108, 124, and 127 of the Federal Competition and Consumer Protection Act (FCCPA) 2018, which address anti-competitive agreements, abuse of dominant position, price fixing, conspiracy, unfair contract terms, and consumer protection principles. While the findings remain interim and further investigation is ongoing, the magnitude and pattern of the fare increases raise broader concerns regarding pricing transparency, competitive conduct, and consumer welfare within Nigeria’s aviation market. Although seasonal demand fluctuations are common in aviation markets globally, the interim findings suggest that significant fare increases occurred during predictable peak periods without corresponding shifts in major cost drivers. The clustering of peak fares within narrow ranges on certain routes, combined with substantial post-peak differentials, warrants careful legislative scrutiny to determine whether such pricing patterns reflect legitimate commercial strategy or potentially fall within the scope of anti-competitive or exploitative conduct as contemplated under the FCCPA 2018. The issue therefore extends beyond short-term fare movements to broader structural questions concerning market concentration, regulatory safeguards, and consumer protection in concentrated-route markets. The National Assembly has constitutional oversight responsibility over regulatory agencies and statutory frameworks governing competition, aviation, and consumer protection. While the FCCPC is empowered to investigate and enforce under the FCCPA 2018, legislative engagement is essential to ensure accountability, assess whether legislative gaps exist, and determine whether additional safeguards are required during predictable seasonal demand surges. Effective oversight will also strengthen coordination between the FCCPC, the Nigerian Civil Aviation Authority (NCAA), and other relevant institutions. In light of the foregoing, the House Committee on Aviation and the House Committee on Commerce (Competition and Consumer Protection) are respectfully urged to consider the following actions: 1. Jointly invite the FCCPC, the NCAA, and representatives of domestic airlines to present detailed findings on festive pricing patterns, cost structures, and route-level data. 2. Formally request submission of the FCCPC’s final investigative report upon conclusion, including methodology, data sources, and legal analysis under the FCCPA 2018, to enable informed legislative review. 3. Engage the FCCPC and the NCAA to determine whether existing provisions of the FCCPA 2018 adequately address excessive pricing during predictable demand spikes or whether legislative clarification or amendment is required to strengthen enforcement tools in sectors characterised by limited-route competition. 4. Through oversight hearings, assess whether route-level market concentration, slot allocation practices, or other structural factors may inadvertently limit competition during peak seasons. 5. In light of the FCCPC’s indication that foreign airlines will also be reviewed, request comparative route analysis to determine whether Nigerian consumers face disproportionate pricing relative to comparable regional markets.en_US
dc.language.isoenen_US
dc.publisherNILDS- Department of Democracy and Governanceen_US
dc.relation.ispartofseriesIssue Brief;
dc.subjectDomestic Flight Faresen_US
dc.subjectConsumer Protectionen_US
dc.titleArbitrary Increases in Domestic Flight Fares: Need for Legislative Oversight to Safeguard Competition and Consumer Protectionen_US
dc.typeWorking Paperen_US


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