- Safiu Kehinde
The Federal Competition and Consumer Protection Commission (FCCPC) has expanded the scope of its existing probe on hike in prices of flights tickets by Nigerian local airlines.
This is coming under the heels of public outcry over the exorbitant fees charged by the airlines for local flights across the country.
Reacting to the development in a statement issued on Friday by its Director of Corporate Affairs, Ondaje Ijagwu, the FCCPC announced plan to probe into pricing templates behind rates charged for tickets by some of the airlines on some domestic routes with a view to establishing possible violations of the provisions of the law.
The commission described the hike as a coordinated manipulation or exploitation in the pricing of airline ticket on certain routes, especially in the South-East and South-South.
Meanwhile, the FCCPC disclosed its ongoing investigation on the airlines pricing model which had attracted litigation against the commission by renowned local airline, Air Peace.
According to the statement, Air Peace had instituted a court action seeking to restrain the commission from examining its pricing mechanisms.
Clarifying the commission’s position, FCCPC Executive Vice Chairman/CEO, Mr Tunji Bello, stated that the commission does not intent to control the price of ticket for airlines, but has a mandate to probe suspected exploitation of customers.
“For the avoidance of doubt, we are not a price control board. But the FCCPA 2018 empowers us to check the exploitation of consumers.
“When we receive petitions or where we find cogent evidence, we will not stand by and watch Nigerian consumers being exploited under any guise.” Bello said.
The FCCPC boss further emphasised that the commission will not hesitate to act where evidence shows that consumer welfare or market competitiveness is being undermined.
Citing the Section 17(b) of the Federal Competition and Consumer Protection Act (FCCPA), the commission held that it is empowered to monitor economic activities in Nigeria to identify anti-competitive, anti-consumer protection and restrictive practices that may adversely affect consumers.
It also cited the section 17(e) which enables the Commission to carry out investigations considered necessary. Although the Commission is not a price control body, fair pricing is a core objective of the FCCPA.
Given the arbitrary spike in airfares, the commission reiterated its extension of its review of pricing patterns, the basis for the increases reported by consumers, and any practices that could undermine fair competition.
Where evidence confirms a breach of the Act, FCCPC vowed to apply appropriate enforcement measures.