House of Representatives to Investigate Exploitative Practices Against Air Peace, Dangote by Foreign Businesses

The House of Representatives has directed the Federal Competition and Consumer Protection Commission (FCCPC) to immediately address the unfair business practices targeting Nigerian companies such as Air Peace and Dangote by certain foreign enterprises operating in the country.

During a plenary session in Abuja, the House also instructed its committees on aviation, commerce, and petroleum (upstream and downstream) to investigate the predatory pricing practices and unethical competitive behaviors of foreign airlines and International Oil Companies (IOCs).

This decision follows a motion presented by Representative Babajimi Benson. In his motion, Benson emphasized the challenges faced by Nigerian businesses competing against foreign entities within Nigeria. He highlighted international business standards, including the United Nations Global Compact and OECD Guidelines for Multinational Enterprises, which mandate fair and competitive business practices.

Benson pointed out that the Federal Competition and Consumer Protection Act of 2018 was enacted to prevent restrictive and unfair practices that could distort competition or lead to the abuse of market power in Nigeria. He argued that a competitive market is crucial for economic efficiency, protecting consumer interests by ensuring a variety of high-quality products and services at competitive prices.

Benson cited specific instances of unfair competition, noting that Air Peace faced significant challenges when it began operating the Lagos-London route with tickets priced below N1 million. Prior to this, foreign airlines such as British Airways, Ethiopian Airlines, and Virgin Atlantic were charging up to N4 million for a one-way ticket. Once Air Peace introduced its lower prices, these foreign airlines drastically reduced their fares, ostensibly to undermine Air Peace’s operations on the London route.