The Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to inter-city road transport operators across Nigeria, cautioning against arbitrary and unexplained increases in fares during the ongoing Yuletide travel season. This directive comes amidst a significant surge in consumer complaints nationwide, highlighting concerns over exploitative pricing practices during a period of heightened demand for travel services. The Commission emphasized its commitment to ensuring fair market conduct and protecting consumers from undue exploitation.
Consumers have reported a consistent pattern of fare hikes, which the FCCPC notes are particularly concerning given recent reports of reduced pump prices for Premium Motor Spirit (PMS) in various parts of the country. While acknowledging that fuel costs represent only one component of transport operational expenses, the regulatory body stressed that any fare adjustments must be transparently justified. Unexplained increases, especially when a key input cost has decreased, raise legitimate consumer protection concerns and signal potential market manipulation.
The Commission understands that seasonal demand and various operational pressures can influence transport pricing. However, it firmly asserts that consumers are entitled to clear, accurate, and timely disclosure of fares before embarking on their journeys. This transparency is fundamental to fair commercial practices, allowing travelers to make informed decisions and preventing ambush pricing tactics that often characterize peak travel periods. The FCCPC insists on full disclosure and fair application of any revised fare structures.
Tunji Bello, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, confirmed the Commission’s intensified market monitoring activities throughout the festive period. Bello stated that the FCCPC is actively engaging with transport unions, park managers, and individual operators nationwide. These engagements are primarily preventive, designed to foster responsible pricing, encourage voluntary compliance with consumer protection laws, and promote orderly market behaviour across the sector.
Bello clarified that fare increases are not inherently unlawful, recognizing the dynamic nature of market forces. However, he issued a strong warning that any conduct exploiting consumers or taking unfair advantage of the heightened seasonal demand could attract severe regulatory action under the Federal Competition and Consumer Protection Act (FCCPA) 2018. The FCCPC is prepared to intervene where practices cross the line from legitimate pricing adjustments to consumer exploitation.
The FCCPC specifically highlighted practices such as inadequate fare disclosure, coercive conduct, and coordinated pricing arrangements that are detrimental to consumers as subjects of strict regulatory scrutiny. Such anti-competitive and exploitative behaviours undermine market integrity and consumer trust. Established violations of the FCCPA 2018 will attract stiff penalties, underscoring the Commission’s resolve to enforce compliance and deter predatory practices.
To empower travelers, the Commission advised passengers to confirm fares unequivocally before departure and to retain proof of payment, such as tickets or receipts. This proactive measure provides consumers with essential documentation should a dispute arise. Furthermore, the FCCPC urged individuals to report any suspected unfair practices through its dedicated complaint portal at complaints.fccpc.gov.ng or via the provided hotlines, ensuring a clear channel for redress.
The prevalence of arbitrary fare hikes during festive seasons not only burdens individual consumers but also impacts broader economic stability by eroding public confidence in market fairness. Such practices can disproportionately affect lower-income earners and families, who often rely on road transport for inter-city travel, making essential journeys during holidays more difficult and expensive. The FCCPC’s intervention aims to safeguard economic equity.
Historically, consumer protection agencies worldwide often heighten vigilance during peak travel periods, recognizing the increased potential for price gouging when demand outstrips supply. The FCCPC’s current caution aligns with these international best practices, demonstrating a proactive approach to mitigate market failures and protect citizens during critical social and economic junctures. This vigilance is crucial for maintaining a balanced and competitive transport sector.
Beyond fuel costs, transport fares are influenced by a myriad of factors including vehicle maintenance, spare parts acquisition, driver wages, insurance premiums, road tolls, and vehicle depreciation. While the recent dip in fuel prices offers some relief, operators face other escalating costs. The FCCPC’s position is not to dictate prices but to ensure that any increases are justifiable, transparent, and do not constitute an abuse of market dominance or a cartel-like arrangement.
