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FCCPC probes fare fixing by local airlines

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The Federal Competition and Consumer Protection Commission has uncovered patterns of price manipulation by some domestic airlines during the December 2025 festive season, raising fresh concerns about consumer exploitation and competition in Nigeria’s aviation sector, according to an interim review released by the agency on Thursday.

It said the development raised fresh concerns over consumer exploitation and market competition in Nigeria’s aviation sector. The interim report, released by the commission’s Department of Surveillance and Investigations, followed an industry-wide probe announced in January.

According to the report, preliminary analysis of data obtained from local airlines showed that ticket fares during the festive peak were significantly higher than post-peak levels in January 2026, despite relative stability in key operating variables such as aviation fuel, government taxes, and foreign exchange.

The commission, in a statement signed by its Director of Corporate Affairs, Ondaje Ijagwu, said the forensic exercise compared domestic pricing trends during the December festive rush with subsequent fare levels. It noted that the differences observed in ticket prices appeared to reflect airlines’ discretionary pricing decisions rather than external cost pressures.

The statement read in part, “A review undertaken by the Federal Competition and Consumer Protection Commission has uncovered patterns of price manipulation perpetrated by some local airlines during the last festive season.

“The forensic exercise benefited from data collated by the commission from airlines operating local routes in the country. The report compares domestic airline pricing from the December 2025 festive period with post-peak January 2026 fare levels.

“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.

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“The differences observed in fares therefore appear to reflect airlines’ arbitrary pricing decisions, including yield management and capacity allocation, rather than any variation in regulatory fees.”

The commission said route-level analysis showed that fare increases coincided with periods of reduced seat availability during predictable seasonal demand peaks, suggesting deliberate supply constraints. It added that on high-density routes, peak fares were often clustered within narrow ranges across several operators, a pattern that may indicate coordinated behaviour.

“For instance, on certain corridors such as Abuja–Port Harcourt, peak fares were several times higher than corresponding post-peak levels. On selected routes, the difference in the price of a single ticket reached approximately N405,000,” the report stated.

It further noted that median fares across sampled routes rose sharply during the festive window compared with January benchmarks. However, the commission acknowledged that seasonal demand, fleet utilisation, and scheduling constraints could also affect pricing during peak travel periods, noting that “these factors remain under consideration as part of the commission’s ongoing review.”

Speaking on the findings, the Executive Vice Chairman and Chief Executive Officer of the Commission, Tunji Bello, said the exercise was part of the agency’s mandate to promote competition and protect consumers.

“This assessment is intended to provide clarity on pricing behaviour during predictable peak travel periods. 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,” Bello said.

He stressed that the report was interim and that the Commission would conduct deeper structural and route-level analysis before taking any regulatory steps.

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“It is important to emphasise that this is an interim report. Our next action will be dictated by the 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,” he added.

The report identified possible violations of provisions of the Federal Competition and Consumer Protection Act 2018, including those relating to anti-competitive agreements, abuse of dominance, price-fixing, and unfair contract terms.

According to the commission, the relevant sections include prohibitions against restraint of competition, abuse of a dominant position, conspiracy, and unfair or unjust dealings with consumers.

It noted, “The report identifies the possible relevance of Sections 59, 72, 107, 108, 124 and 127 of the Federal Competition and Consumer Protection Act 2018, which respectively address the prohibition of agreements in restraint of competition, the prohibition of abuse of a dominant position, the offence of price-fixing, conspiracy to commit offences under the Act, the right to fair dealings, and the prohibition of unfair, unreasonable or unjust contract terms.”

Meanwhile, Bello disclosed that the commission would extend its probe to international airlines amid widespread complaints that Nigerians are charged higher fares compared to travellers in neighbouring countries on similar routes.

“Following the ongoing review of domestic airlines, the Commission will also examine the pricing behaviour of foreign carriers operating in Nigeria. There have been persistent concerns that Nigerians pay higher fares on certain routes compared to countries of similar distance,” he said.

Airfare pricing in Nigeria has remained a major concern for travellers, particularly during festive periods when demand surges. Industry operators often attribute high fares to limited fleet capacity, rising aviation fuel costs, and operational challenges.

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However, consumer groups have accused airlines of exploiting predictable seasonal demand by restricting seat supply and inflating prices. Nigeria’s aviation sector has also struggled with aircraft shortages, high maintenance costs, forex constraints, and infrastructure gaps, which have reduced capacity and increased pressure on fares.

The FCCPC’s probe could reshape pricing transparency and competition in the sector if enforcement actions follow. The development comes amid broader regulatory efforts to strengthen consumer protection and ensure fair market practices across critical sectors of the economy.

Responding to the allegations, spokesperson of the Airlines Operators of Nigeria, Prof Obiora Okonkwo, tongue-lashed the FCCPC, saying it lacks the required expertise to dabble in how airfares are fixed. He further said the FCCPC’s actions are detrimental to the survival of domestic airlines.

Okonkwo said, “I have not read the details of the report, but what the FCCPC is doing is very detrimental to the survival of domestic operators. They don’t know the economics of airlines and do not possess the professional expertise to dabble in how prices are fixed.

“They don’t understand airline operations, and, as far as the AON is concerned, they are playing to the gallery and should not be taken seriously. We have immense respect for all government agencies, but we would not accept any statement not based on realities or facts.”‎

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Nigerian states’ revenues rise 93%, but education spending drops — World Bank

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The World Bank says Nigeria’s 36 states recorded a 93 per cent increase in revenues between 2023 and 2025 but education received a declining share of the sector’s expenditure.

The bank disclosed this in its latest Nigeria Development Update, which examined how increased public revenues have influenced spending priorities across the federation.

The report was made available to the News Agency of Nigeria by the World Bank in Washington D.C.

According to the report, states’ aggregate revenues rose by approximately 93 per cent in real terms, while expenditure increased by 92 per cent during the period.

The report attributed the improvement partly to exchange-rate reforms, petrol subsidy removal, stronger revenue administration and increased allocations from the federation account.

It said states also benefited from refunds, settlement of longstanding federal obligations, intervention funds, and stronger Value Added Tax collections.

However, education’s share of total state expenditure declined from 14.9 per cent in 2021 to 12.1 per cent in 2025, according to the report.

Health expenditure remained broadly stable at approximately seven per cent, while social protection’s share increased from 1.4 per cent to 4.4 per cent.

The bank said capital expenditure increased significantly, accounting for 61 per cent of state spending, compared with 46 per cent previously.

Transport infrastructure recorded the largest increase, alongside substantial spending on housing, agriculture and other economic investments.

The report quoted Mathew Verghis, the World Bank Country Director for Nigeria, as saying that increased revenues provided the opportunity to improve infrastructure, education, healthcare, and water services.

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He said greater spending efficiency, accountability and improved service delivery were essential to ensuring that additional public resources benefited Nigerians.

The bank acknowledged improvements in states’ fiscal reporting, transparency and internally generated revenue.

It, however, stressed that stronger investment in human capital was necessary to translate economic reforms into sustainable employment and improved living standards.

The report also projected average economic growth of 4.4 per cent between 2026 and 2028, subject to sustained reforms and improved service delivery.

It urged federal and state authorities to ensure that increased public revenues translated into tangible improvements in Nigerians’ welfare.

NAN

Source: punchng.com

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Nigeria promotes investment without building production capacity – UNILAG don

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A professor of Comparative Political Economy at the University of Lagos, Adelaja Odukoya, has asserted that Nigeria’s economic policies promote investment without sufficiently strengthening domestic production.

Odukoya argued that the contradiction had weakened the country’s productive foundations, with policies encouraging investment and entrepreneurship while failing to create the technological capacity, productive employment and processing industries needed to drive sustainable development.

Odukoya spoke at the maiden edition of the Adeleke University Toyin Falola Annual Lecture, held on Thursday at the Performing Arts Theatre, Adeleke University, Ede.

The lecture had as its theme, “History, Power and Accumulation: Reimagining Africa in the Globally Disorderly Order.”

Odukoya identified several contradictions in the way the Nigerian state manages economic activity.

He said, “The state promotes investment without creating conditions for technological transfer. It encourages entrepreneurship without generating sufficient productive employment.

“It expands primary-product exports while leaving processing capacity undeveloped. It constructs infrastructure without establishing strong linkages with domestic production.”

According to him, the contradictions explain why increased economic activity and accumulation do not necessarily translate into development.

“Accumulation is not synonymous with development,” Odukoya stated.

He argued that genuine development should be measured by the expansion of productive, technological, institutional and human capabilities.

“A country could attract investment, export minerals and agricultural commodities and record economic activity while still failing to build the domestic industries and technological capabilities required for long-term development,” he said.

His argument was echoed by Prof Toyin Falola, who said Africa’s vast natural resources would continue to reinforce dependency unless governments developed the industrial, technological and institutional capacity to transform them into productive power.

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Falola said Africa’s resource problem was not simply one of historical exploitation, but also the continent’s failure to convert its resource endowments into power.

“The issue, however, is not just to repeat the history of exploitation. It is more important to know how Africa turns its great resources into power,” Falola said.

He argued that Africa could not afford to remain a spectator as global economic and geopolitical arrangements continued to change, stressing that resource ownership without the capacity to add value would not guarantee influence.

Falola said the continent required a combination of knowledge, government policy and industrial capacity to change its economic position.

“There must be universities that generate new knowledge; there must be governments that translate this knowledge into policies; there must be industries that add value to the continent’s natural resources,” he said.

He added that Africa needed more than improved infrastructure and stronger economies if it wanted to exercise greater influence in the global system.

“The future of the continent will require more than just better infrastructure, improved economies, and more effective political institutions,” Falola said.

Source: punchng.com

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Import waivers, insecurity end two-year agric trade surplus

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Import waivers meant to ease hunger and insecurity on farms have led to a deficit, ending a two-year run of surpluses, as Nigeria’s agricultural trade balance swung from a N740.27bn surplus in the first half of 2025 to a N56.13bn deficit in H1 2026, according to agriculture and trade experts.

Recent foreign trade data from the National Bureau of Statistics showed that agricultural exports fell by 33.28 per cent, or N985.14bn, to N1.98tn in H1 2026 from N2.96tn in H1 2025.

Agricultural imports fell by only 8.50 per cent, or N188.74bn, to N2.03tn from N2.22tn over the same period. The gap between the two movements produced a N796.40bn swing in the trade balance.

Nigeria recorded a N365.74bn deficit in H1 2023, when imports of N926.25bn far exceeded exports of N560.51bn. The balance then turned to a N194.92bn surplus in H1 2024 before it widened to N740.27bn in H1 2025.

In separate phone interviews with The PUNCH, Agribusiness experts, including the Chairman of the Lagos Chamber of Commerce and Industry’s Agricultural and Allied Group, Tunde Banjoko, explained that recent government policy led to the shift.

Banjoko said, “Some waivers were given for products like palm oil and rice, and the import tariffs were drastically reduced. It became more favourable for people to import than to patronise local producers.”

He said the waivers on food commodities hurt domestic producers, even though lower tariffs on tractors and manufacturing equipment helped them.

According to Banjoko, “The effect is that our imports will rise above our exports. Second, we will discourage local production. Thirdly, we will be reducing employment, because some factories will shut down if they are not able to compete.”

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Banjoko also said weak funding for processors compounds the problem. He said foreign direct investment flows mainly into the capital market rather than into production and processing, so local processors cannot scale.

He urged the Federal Government to speed up the Special Agro-Industrial Processing Zones programme. “We should speed up such projects where we can produce enough for our country and start exporting, not look for shortcuts by reducing prices,” Banjoko added.

Meanwhile, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, identified two major factors behind the deficit. He said the first was the Federal Government’s decision to allow some food imports to tackle runaway inflation.

Yusuf said, “The first is the decision of the government to allow for some food imports as a result of the challenges of food inflation, which at a point was getting almost completely out of hand.”

He added that insecurity worsened the supply gap and cut export capacity, stating, “Insecurity led many farmers to leave their farms. Many of them have ended up in IDP camps, and quite a number have completely abandoned farming.”

He added that farmers cannot export without output. Yusuf said, “You can only export when you have the output.”

Yusuf also said high input costs and falling produce prices have discouraged farming. He said, “Most of these inputs are imported, so the exchange rate situation has seriously affected the cost of inputs, and the prices of produce have gone down.”

He urged the Federal Government to cut the cost of fertiliser, agrochemicals, machinery and improved seedlings. He also called for a minimum guaranteed price for agricultural produce.

See also  Kwara strengthens partnership to boost mechanised farming

Yusuf said, “The government can establish a threshold below which, if prices fall, it will give farmers some compensation. That is the way it is done in many other economies.”

Source: punchng.com

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