December 10, (THEWILL) – I read the comment attributed to the Honourable Minister of Aviation and Aerospace Development, Mr Festus Keyamo, over the faceoff between the Federal Competition and Consumer Protection Commission and the management of Air Peace with keen interest.
The minister, while reacting to the FCCPC press release over its decision to investigate the alleged exploitation of consumers by Air Peace said the FCCPC acted ‘carelessly.’
His words: “I think it was a very careless statement – I say that with all apology – by the agency, making such a statement without consulting the core agency involved in regulation, which is the NCAA.
”The power to regulate these airlines and for the airlines to inform about their price increase and all of that is domiciled in the NCAA; that is the core agency.
“They should have contacted the NCAA for them to look at the books, which we have been doing, so we would have given them facts. But to single out a few airlines that we are struggling to expose to the world for them to get more enhanced capacity, it was a bit careless.”
With all due respect to Mr Keyamo, I must admit that the learned gentleman acted more like a business CEO than a Minister of the Federal Republic whose main job is to supervise policy implementation in his ministry in accordance with the Renewed Hope Agenda of Mr President.
Suffice to say that the same Act of the Parliament which empowered the NCAA to regulate activities of airlines also empowered the FCCPC to protect Nigerian Consumers.
In the case of Air Peace, it was never a case about business regulation but a case of exploitative practice and the agency saddled with such responsibility is the FCCPC and not the NCAA. So, the idea of contacting the NCAA before doing its job is immaterial.
If it were a case of misunderstanding between the FCCPC and the NCAA, I would have agreed with the Honourable Minister that the FCCPC ought to have contacted the NCAA before issuing such a public statement because they are all serving one body which is the Federal Government but it was not so.
Instead, it was a misunderstanding between a government agency and a business organisation.
We must understand that the FCCPC derived its power from the act of the Parliament which empowered it to protect consumers’ rights and interests; which includes addressing consumer complaints, investigating grievances, and ensuring that businesses adhere to fair and ethical practices.”
The FCCPC is also empowered by the Act to take legal action against companies that infringe on consumer rights or engage in fraudulent activities.
In this regard, the FCCPC recently investigated and issued multi-million dollar fines against the British-American Tobacco, Meta and Coca-Cola companies on allegations of breach of consumer protection rights.
In the same vein, the FCCPC is empowered to enforce compliance with consumer protection laws and other practices which impugn consumer rights.
It does this through regular monitoring of market practices and ensuring compliance, as well as intervening where necessary to address violations.
According to the Punch Newspaper Editorial of December 5, 2024, titled: “Banks, Telcos: FCCPC Must Enforce Consumer Rights,” the paper said: ” The aviation sector presents another glaring example of regulatory shortcomings.”
“Air Peace’s reported fare hikes are exploitative and unjustifiable. The National Civil Aviation Authority has failed to curb such practices, leaving passengers vulnerable to price gouging.”
“The FCCPC investigations could signal a turning point. By enforcing reforms and imposing meaningful penalties on violators, the commission can set a precedent for corporate responsibility… The efforts can restore public confidence in Nigeria’s corporate and regulatory systems. This opportunity to champion consumer rights must not be squandered.
Nonetheless, why must Air Peace be an exception when there are other companies like Guaranty Trust Bank, MTN Nigeria, and Air Peace that are being investigated?
The essence of the investigation was to address widespread allegations of unfair treatment, negligence, and inadequate consumer protection mechanisms.
According to FCCPC, “The inquiry into Air Peace’s pricing practices stems from allegations of unjustified fare increases on advance bookings for certain domestic routes, lack of transparency in pricing structures and practices that potentially contravene consumer rights and fair competition principles.”
Therefore, I believe the public remark by Mr Keyamo is non-ministerial because he has access to the leadership of FCCPC to seek clarifications instead of creating the impression that there is a lack of coordination within the system.
Besides, to whom you can whisper, there is no need to shout because the faceoff is not between FCCPC and NCAA.
In conclusion, both the FCCPC and the NCAA as well as other regulatory bodies in the country should be encouraged to do their jobs without trying to obfuscate their lawful activities.
***written by Edwin Uhara
