Following complaints by travellers over the continuous hike in airfare, the Federal Competition and Consumer Protection Commission, FCCPC, has commenced an investigation to unravel the circumstances surrounding the development.
Babatunde Irukera, the Executive Vice Chairman of the Commission, disclosed this on Thursday during a press conference in Abuja.
The FCCPC boss, who narrated several achievements of the Commission since its inception, lamented that there are difficulties in determining price hikes, particularly regarding airfare.
He said, “There is a provision in the law against price gouging. Nigeria is a free economy. The best price, and a constitutionally legitimate adopted price for anything, is negotiated between a buyer and a seller in a free market.
“Airfare remains the most complex area for this. For instance, it is possible to travel the shortest distance and even pay more. Someone sitting beside you may even pay something different.”
Irukera also told journalists that the agency lacks the constitutional power to impose prices on goods and services, saying Nigeria has a free market where the seller and the buyer determine costs.
“Do we as regulators have the power to impose prices in a free market? No. We don’t. So, the way to determine excessive pricing is through investigation.
“How do you determine that the price is excessive? It is not just about looking at the number because the impute can make a difference, and we are dealing with that.
“I can tell you that it’s all competition issues. For instance, if you are travelling from Abuja to Lagos for N135,000, Lagos to Uyo can cost you twice the amount because there is no competition there.
“Lack of competition always raises prices high. You can imagine how complex the investigation into airfare is. There are many things to look at when investigating a hike in airfare.
He said that although the Commission also believes that the airfare is too high, it can only take necessary actions after investigation.
“We also believe that the airfare is too high, but it would be an abuse of the office for regulators to take certain actions just because you feel the prices are high. We aim at establishing evidence and confronting the body, but that is hard work,” he added.
