The Federal Competition and Consumer Protection Commission announced on 1 December 2024 that it was investigating Air Peace, Nigeria's largest domestic carrier, over allegations of exploitative fare practices. The commission said its probe would examine claims of significant price increases for advance bookings on certain domestic routes, part of a broader inquiry into pricing practices across Nigeria's aviation sector.
Air Peace pushed back against the characterisation, saying that factors such as petrol costs, airport charges and broader economic conditions, including the fluctuating exchange rate, contributed to the prices it charged passengers. The airline described the allegations as damaging and unfair, arguing that its pricing reflected genuine cost pressures rather than an attempt to exploit passengers.
Keyamo Weighs In
Minister of Aviation and Aerospace Development Festus Keyamo responded to the allegations by offering context on the broader economic environment, noting that the exchange rate had a direct impact on airline costs across the industry, not just at Air Peace. His comments were read by some stakeholders as a measure of support for the carrier even as the FCCPC pressed ahead with its investigation.
Part of a Wider Reckoning
The probe came at the tail end of a year in which passenger complaints about high fares had grown louder, fuelled by aircraft scarcity that left fewer carriers operating certain routes and, in the view of some industry analysts, reduced the competitive pressure that would normally keep prices in check. The FCCPC's inquiry into Air Peace was widely seen as a test case for how far regulators were prepared to go in scrutinising airline pricing decisions in a market still recovering from years of currency and fuel-cost turmoil.