Obiora Okonkwo airfares remain low despite operating costs, as FCCPC investigates recent domestic ticket price increases in Nigeria
Prof. Obiora Okonkwo, Chairman and Chief Executive Officer of United Airlines Limited, has defended domestic airfares in Nigeria, saying they remain among the lowest globally despite rising operational costs.
Also read: Captain Bish Johnson Alleges Foreign Support for Nigerian Banditry
Okonkwo, who is also the Spokesperson for Nigerian airline operators, made the remarks on Channels Television’s The Morning Brief* on Thursday.
His comments follow recent public complaints alleging significant airfare hikes.
Okonkwo explained that airlines charge relatively low fares while facing high operating costs, including taxes, levies, and loans with interest rates of 30 to 35 per cent, compared with 2 to 7 per cent in other countries.
“I fly around the world and pay about $1,400 for a 45-minute flight. Multiply that. Nigeria remains one of the countries with the cheapest fares, and it is to the detriment of the operators,” Okonkwo said.
He added that ticket prices often vary within the same aircraft, with some passengers paying higher fares to offset discounted rates for others.
Okonkwo dismissed allegations of price gouging, attributing recent fare spikes to seasonal travel demand rather than deliberate manipulation.
He noted that online reports often highlight premium or last-minute tickets, rather than standard economy fares, which typically range between N120,000 and N150,000.
The remarks come amid calls from the House of Representatives for tax waivers and reductions in aviation auxiliary charges during the Yuletide season.
The Senate has also summoned the Minister of Aviation, Festus Keyamo, to address rising domestic ticket prices.
The Federal Competition and Consumer Protection Commission (FCCPC) has expanded its probe into domestic airfare increases, particularly on routes serving the South-East and South-South regions.
FCCPC Director of Corporate Affairs, Ondaje Ijagwu, said the investigation targets potential coordinated price manipulation and will scrutinise airline pricing templates and ticketing behaviour.
FCCPC Executive Vice Chairman Tunji Bello emphasised that the agency does not control prices but is empowered to protect consumers from exploitation under the Federal Competition and Consumer Protection Act, 2018.
Also read: Captain Bish Johnson Alleges Foreign Support for Nigerian Banditry
The commission pledged to act decisively where violations threaten consumer welfare or market competitiveness.
