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Business & Economy

Airlines may refund passengers over Christmas fare hike, says Commission boss

The FrontierThe FrontierMarch 12, 2026 1304 Minutes read0

•A flight

The Federal Competition and Consumer Protection Commission, on Thursday in Abuja, said it will compel airlines that hiked ticket prices during the December 2025 Yuletide to refund excess charges to passengers who were exploited.

The Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, revealed this when he briefed State House correspondents today at the Presidential Villa, Abuja.

Bello disclosed that the Commission had concluded investigations into price-fixing allegations against about five or six airlines and would issue a final report with penalties soon,

He revealed that airline tickets that ordinarily cost between N145,000 and N150,000 suddenly jumped to between N400,000 and N670,000 during the Christmas period, prompting widespread complaints from travellers.

“We investigated following the complaints that they fixed prices during the Christmas period. Prices of tickets, airline tickets, were around N45,000 to N50,000, and suddenly became N400,000 to N500,000, from N400,000 to N670,000 during Christmas period.

“So we followed up through our investigation, and we were able to conclude that it was a kind of price-fixing mechanism,” the EVC stated.

He disclosed that the commission’s preliminary report had already found the airlines culpable of price exploitation, and a final report with specific penalties would be released shortly.

“The preliminary report already found them wanting in that regard, so the final report is going to be issued very soon.

“And what we are also considering is to look at a situation where we have to ask them to refund the excess to the passengers which they exploited.

“So those are some things we are considering. By the time we come up with the final report, you will see that,” the FCCPC boss said.

When pressed to name the airlines involved, he declined but confirmed that about five or six airlines were under investigation.

“I know about five or six, but I don’t want to mention names,” he stated.

The Commission’s action follows complaints from Nigerians who travelled during the Christmas and New Year period and were forced to pay exorbitant fares for domestic flights due to high demand and limited seat availability.

Many travellers had taken to social media to protest the sudden spike in ticket prices, which they described as exploitative and insensitive given the economic hardship facing Nigerians.

Bello said the FCCPC’s preliminary findings suggest that airlines may have engaged in collective price-fixing, a practice prohibited under the Federal Competition and Consumer Protection Act.

Price-fixing occurs when competing businesses agree to set prices at a certain level rather than allowing market forces to determine pricing, and it is considered anti-competitive behaviour punishable under Nigerian law.

Previous enforcement actions by the FCCPC typically focus on fines and penalties payable to the government.

During the briefing, the FCCPC also addressed concerns about electricity tariff bands, with officials defending the Band A classification while acknowledging that consumers are not always receiving the promised 20 hours of daily power supply.

The Commission’s Executive Commissioner of Operations, Mr Louis Odion, explained that the commission’s role is not price control but ensuring that consumers are not exploited through the pricing of products or services.

“We are not a price control agency, but what we try to do is to ensure that consumers are not exploited, either by way of pricing of products or services.

“In the electricity sector, that is where we have most of the challenges that consumers contend with in this country,” the official stated.

He disclosed that Band A consumers, who pay higher tariffs, are entitled to at least 20 hours of electricity supply daily, while Band B consumers should receive 16 hours.

The official urged consumers to formally complain when they do not receive the promised hours of supply, noting that the commission operates on an evidence-based system.

“A lot of times, if you go ask them, they will tell you this estate is actually on Band A, but we haven’t received any formal complaint from the estate as to the fact that this is the number of hours of electricity we are receiving.

“Our operational working is evidence-based. If we do not have evidence of a particular issue, we are not able to actually act on it,” he explained.

On prosecution powers, the Commission’s Head of Legal Services, Chizenum Nsitem, revealed that the FCCPC has prosecuted over 25 cases since the operationalisation of the Federal Competition and Consumer Protection Act in 2019.

“At the last count, we have over 25 cases that we have been able to prosecute given the infractions of the provisions of the FCCPA. For the fear of being prosecuted, undertakings have relatively complied with provisions of the FCCPA,” Nsitem stated.

He disclosed that the commission has over 30 cases pending at the Federal High Court and the FCCPC Tribunal, including five cases at the Court of Appeal where undertakings have appealed tribunal decisions.

The legal chief cited Section 20(2) of the FCCPA, which empowers legal officers to prosecute on behalf of the commission, and Section 113, which allows referral of cases to the Attorney-General of the Federation.

The FCCPC was established to protect and promote the interests and welfare of consumers, ensure that consumers’ rights are respected, and provide consumers with access to information to enable them to make informed choices.

Nigeria’s aviation sector has faced criticism over fluctuating ticket prices, with airlines attributing high fares to the rising cost of aviation fuel, foreign exchange challenges, and operational expenses.

 

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