The Airline Operators of Nigeria (AON) has disputed a preliminary finding by the Federal Competition and Consumer Protection Commission (FCCPC) that domestic carriers manipulated airfares during the 2025 yuletide season, arguing the regulator lacks the expertise to assess airline economics.
The FCCPC’s interim report, released on February 26, alleged that local airlines engaged in price-fixing, with some routes in the South-East and South-South seeing fare increases exceeding 131 per cent during the peak travel period. The commission stated the review was part of its statutory duty to monitor competitive markets and protect consumers, emphasizing the report was interim and further analysis was underway.
In a sharp rebuttal, the AON said the FCCPC’s claims are based on a flawed understanding of the industry and threaten airline viability. Obiorah Okonkwo, spokesperson for the AON and chairman of United Nigeria Airlines, stated that while airlines respect government institutions, they would reject conclusions not grounded in operational realities.
“They don’t know the economics of airlines and do not possess the professional expertise to dabble into how prices are fixed,” Okonkwo said. He characterised the report as an attempt to “play to the gallery” and asserted the AON would not accept statements not based on facts or operational realities.
The FCCPC had previously highlighted the findings in a social media post, indicating the probe would next examine foreign airlines. Executive Vice Chairman Tunji Bello clarified that the commission’s role is to ensure market outcomes align with competition law, not to disrupt legitimate commerce.
“This assessment is intended to provide clarity on pricing behaviour during predictable peak travel periods,” Bello said. “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.”
The public clash underscores the tension between regulatory oversight and industry operations in Nigeria’s aviation sector. The AON contends that fare adjustments reflect elevated operational costs, including foreign exchange volatility and infrastructure charges, factors it says the FCCPC has not adequately considered.
For consumers, the dispute leaves uncertainty over pricing practices during high-demand periods. The FCCPC has indicated it will issue a final report and determine whether regulatory guidance or enforcement action is necessary. The AON has urged the commission to engage with industry experts to better understand the economic pressures facing domestic carriers.
The outcome of this regulatory review may influence how Nigeria’s aviation market navigates future peak seasons and could set a precedent for how competition law is applied to service industries with high fixed costs. Both entities have indicated a willingness to engage, albeit from markedly different positions on the underlying facts.
