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FCCPC Warns Air Peace against Obstructing Ongoing Inquiry
Federal Competition and Consumer Protection Commission (FCCPC) has warned Air Peace against obstructing the ongoing inquiry into alleged exploitative ticket pricing and other potential violations of consumers’ rights.
This is according to a statement on Sunday by Ondaje Ijagwu, Commission’s director, Corporate Affairs.
The FCCPC’s inquiry into the airline was prompted by a surge of complaints from passengers about unfair pricing, flight cancellations, and other practices potentially harmful to consumers.
The commission conducted a meeting with Air Peace on December 3, 2024, to address the concerns raised in numerous petitions.
The FCCPC said the session, which was held in camera, was intended to protect the confidentiality of the investigation.
However, the commission noted that “shortly after the meeting, leaks surfaced in the media, misrepresenting the proceedings and making unfounded claims.”
Recall that the FCCPC had clarified the situation on December 5, reiterating that its investigation into Air Peace was ongoing.
In the statement, the commission said, “The inquiry is still ongoing, and the public should be wary of manufactured news. The report claiming that Air Peace was not under investigation was not disseminated through our official communication platforms.”
Ijagwu said the leaks quoted Air Peace’s Chairman, Mr Allen Onyema, making various statements, including a boast that he could “shut down the airline” as a favour to the nation, but conveniently omitted other comments that raised concerns.
The FCCPC noted that Onyema’s remarks appeared to be intended to undermine the investigation and distract from the core issues.
The airline had earlier, in a press conference on Friday, asserted that only the aviation regulatory agency had the authority to investigate its affairs, an argument that the FCCPC dismissed as a misunderstanding of both the legal and moral framework surrounding consumer rights.
“The rights of passengers are inalienable and guaranteed under the FCCPA,” the FCCPC countered, emphasising that the Commission has the legal mandate to investigate pricing practices and other consumer-related issues in all sectors, including aviation.
The Commission pointed to Section 17(e) of the FCCPA 2018, which gives it the authority to conduct inquiries when necessary or desirable in connection with any matter falling under its purview.
Further reinforcing its mandate, the FCCPC cited Section 127(1)(a) of the FCCPA, which empowers it to ensure that pricing practices across all sectors, including aviation, are fair and non-exploitative.
One of the major issues under investigation is Air Peace’s pricing practices.
The FCCPC said the airline had recently proposed fare hikes ranging from N500,000 to N700,000 for a one-hour domestic flight, citing high fuel costs.
However, several consumer complaints contest these figures, claiming that Air Peace’s fuel cost is inflated.
“At the proposed N500,000 fare, a Boeing 737-500 would be fetching a whopping N60 million per one-hour service,” the FCCPC stated.
It contrasted Air Peace’s pricing with a competitor airline that recently reduced its fares to as low as N80,000 for similar domestic routes, demonstrating that affordability and sustainability can coexist in the aviation industry.
Ijagwu said in addition to concerns about pricing, several passengers have complained about arbitrary flight cancellations and poor compensation practices.
FCCPC noted that for instance, on November 29, a group of irate passengers at the Nnamdi Azikwe International Airport staged a protest after experiencing a four-hour delay on the Abuja-Lagos route. The protest led to a security intervention to restore order at the airport.
It added that passengers have also reported that after experiencing flight cancellations or delays, they were forced to pay a 50 per cent surcharge to rebook their tickets on another day.
The FCCPC said despite these efforts to deflect attention from the ongoing inquiry, it remains resolute in its commitment to safeguarding consumer rights.
“No amount of blackmail or cowboy tactics can stop the Commission from the ongoing thorough investigation of the allegations against Air Peace,” the Commission warned.
Reaffirming its role, the FCCPC underscored its responsibility to ensure that all sectors, including aviation, operate in a fair and competitive environment.
“The Commission is committed to safeguarding consumer rights, promoting market fairness, and fostering a competitive and transparent marketplace across all sectors, including aviation,” Ijagwu said.
Justice Mojisola Dada of the Lagos Special Offences Court, Ikeja, has rejected a document presented by the Economic and Financial Crimes Commission (EFCC) in the ongoing trial of a former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, and four others over allegations of defrauding Arik Air of N76 billion and $31.5 million.
Other defendants in the case include Mr. Kamilu Omokide, a former receiver manager of Arik Air Limited, Capt. Roy Ilegbodu, Arik Air’s Chief Executive Officer (CEO), Union Bank Limited, and Super Bravo Limited.
During the proceedings, the second prosecution witness, Mr. Augustine Obikwe, a retired Union Bank official, sought to tender a document he obtained from the EFCC. However, the defense team objected to its admissibility, arguing that it was neither signed nor properly certified.
After hearing arguments from both sides, Justice Dada ruled that the witness was not part of the EFCC’s investigative team or an AMCON official, making him ineligible to tender the document. Citing Section 104(1) of the Evidence Act, she held that only an officer with the original document had the authority to certify it.
“It is trite that the party must lay the foundation for any document sought to be tendered under the Evidence Act. Public documents must be certified by a public official,” the judge stated, rejecting the document.
Led in evidence by prosecution counsel Dr. Wahab Shittu (SAN), the witness, Mr. Obikwe, recounted his role in the financing of Arik Air’s aircraft procurement. He disclosed that he had worked in the United States from 1980 to 1982 before serving as the Group Executive Director of Corporate and International Banking at Union Bank.
He explained that Union Bank acted as a guarantor for Arik Air in securing funding for the acquisition of five aircraft—three Boeing 737-800 and two Airbus 340-500 planes—through export credit agencies, including US EXIM Bank, Coface of Germany, and the Export Credit Guarantee Department (ECGD) of the UK.
“Union Bank did not commit any money for the guarantee of the 85 percent. The three Boeing 737-800 were used for local operations, while the widebody aircraft were deployed to New York and London,” Obikwe testified.
He further noted that until his retirement from Union Bank in August 2009, Arik Air had never defaulted on its loan repayments.
During the hearing, the prosecution sought to tender a report from a meeting held by stakeholders in London. However, the defense team, led by Prof. Taiwo Osipitan (SAN) and Mr. Olalekan Ojo (SAN), objected on the grounds that the document was neither signed nor dated.
Ojo (SAN) argued that the document lacked authenticity, while Osipitan (SAN) questioned its origin, emphasizing that only original copies could be certified under the law.
Despite the objections, prosecution counsel Shittu (SAN) insisted on its relevance, stating, “Even if the document was stolen, in as much as it is relevant to the case, my lord, it is admissible in the law court.”
Justice Dada ruled in favor of the defense, maintaining that the document could not be admitted as evidence due to improper certification and the fact that the witness was not an EFCC investigative officer.
Following this ruling, the court adjourned the trial to May 19, 2025, for further proceedings.
In a bold step toward gender equality in STEM, the Tosin Eniolorunda Foundation, alongside Moniepoint Group and the Association of Professional Women in Engineering (APWEN) Ile-Ife chapter, held a financial literacy workshop at Obafemi Awolowo University (OAU).
Cross section of guests and participants at the Financial Literacy initiative which was held on the campus of the OAU, Ile-Ife.
Organized as part of International Women’s Day (IWD) activities, the event aimed to equip over 250 female STEM students with essential financial skills to thrive in their careers and personal lives.
Aligning with this year’s IWD theme, “Accelerate Action,” the initiative focused on dismantling systemic barriers such as unequal pay, restricted education opportunities, and underrepresentation in leadership, while fostering confidence and ambition among women in science, technology, engineering, and mathematics.
The event is part of the foundation’s wider efforts to advance STEM education in Nigeria. Recently, it donated a state-of-the-art CAD/CAM laboratory to OAU, underscoring its commitment to innovation and inclusivity in critical fields.
Tosin Eniolorunda, OAU alumnus and Group CEO of Moniepoint Inc., highlighted the importance of financial literacy as a cornerstone for financial inclusion. He referenced Central Bank of Nigeria (CBN) data showing that only 38% of Nigerian adults are financially literate, stressing the urgency of addressing this gap.
“Financial literacy is vital for empowering young women pursuing STEM careers. It enables them to make informed decisions about education, professional development, and entrepreneurship,” said Eniolorunda.
Key university figures, including the Dean of the Faculty of Technology, Prof. Lasisi Umoru, and APWEN Ile-Ife Coordinator, Prof. Mrs. Bello Sururah, attended the event. Prof. Omotayo Aregbesola delivered an inspiring keynote lecture titled “Now and Beyond: Excelling as Females in STEM.”
The workshop concluded with a dynamic session on financial literacy strategies, led by Yomi Ojute, Learning and Development Specialist at Moniepoint Inc. Attendees left with actionable insights and tools to take control of their finances and future.
This initiative exemplifies the power of collaboration in breaking down gender barriers, inspiring a new generation of female STEM leaders, and building a more inclusive future for Nigeria.
In a significant move to safeguard Nigeria from potential fraud, the Attorney-General of the Federation and Minister of Justice, Chief Lateef Fagbemi (SAN), has led a team of senior lawyers to represent the Federal Government at a Supreme Court hearing over the Petro Union Oil and Gas Limited case.
The development marks the first time the Federal Government was represented at such a high level since the little-known company secured a judgment from the Federal High Court in Abuja for £2.556 billion.
However, the Economic and Financial Crimes Commission (EFCC) had concluded in its investigation report that Petro Union obtained the judgment by allegedly using a Barclays Bank UK cheque to draw from an account closed five years before it was presented.
The anti-graft agency’s finding led to the ongoing prosecution of the oil company’s directors before the Federal High Court in Lagos.
The directors, Prince Kingsley Okpala, Prince Chidi Okpalaeze, Prince Emmanuel Okpalaeze, and Abayomi Kukoyi (trading as Gladstone Kukoyi & Associates), are facing a 13-count charge of conspiracy, forgery, and fraud before Justice Chukwujekwu Aneke.
Chief Fagbemi’s appearance in the controversial case is particularly notable because it demonstrates the Federal Government’s resolve to fight the March 11, 2014, court order, which directed the Central Bank of Nigeria (CBN), Union Bank of Nigeria, the Minister of Finance, and the Attorney-General to jointly pay Petro Union the judgment amount along with 15 per cent interest per annum.
During the March 17, 2025 proceedings, Chief Fagbemi led a team of lawyers, including Mohammed Gazali (SAN), a Director in the Federal Ministry of Justice, and other lawyers representing the Federal Government and its agencies.
Chief Adegboyega Awomolo (SAN) led the legal team for Union Bank, while the CBN’s legal representation was headed by Damian Dodo (SAN) alongside Mrs. Olabisi Soyebo (SAN) and others.
Chief Awomolo argued an application to amend the Notice of Appeal by adding eight additional Grounds of Appeal.
While the AGF and the CBN’s lawyers supported the motion, Petro Union’s legal team opposed it.
After listening to arguments on the matter from the lawyers, the Supreme Court reserved its ruling for a later date to be communicated to the parties.
The judgment sum against the Federal Government, CBN, and Union Bank now stands at over £15 billion, including interest—exceeding 50% of Nigeria’s foreign reserves.
Legal experts have compared this situation to the infamous $10 billion Process and Industrial Development (P&ID) case.
The troubling events leading to this judgment began in 1994 when Petro Union allegedly fraudulently obtained a cheque worth £2.556 billion from a Barclays Bank branch in the UK.
The company presented this cheque at a Union Bank branch in Lagos, claiming it was for a contract related to refinery construction and the establishment of a bank.
Subsequent investigations by the CBN and Union Bank unveiled that the cheque, dated December 29, 1994, and drawn in favour of Gladstone Kukoyi & Associates, was confirmed by Barclays Bank to be counterfeit.
Barclays Bank had also indicated that Gazeaft Limited, the issuer of the bill of exchange, did not have an account with them and was not listed as a registered company in the UK.
Despite these findings, Petro Union and its agents persisted in their claims that Union Bank had received £2,556,000,000.00 on their behalf and had transferred £2,159,221,318.54 to the CBN while retaining £396,778,681.46. This led to court actions against the CBN and Union Bank based on these dubious claims.
In a concerning development, Petro Union managed to secure a judgment by presenting an alleged statement of account from the CBN, neglecting the fact that a Central Bank serves as a banker to the government and banks, not to individual companies or persons.
Following these proceedings, both the CBN and Union Bank filed appeals to overturn the judgment, particularly as evidence of fraudulent motives began to emerge during the ongoing criminal prosecution of Petro Union and its executives at the Federal High Court in Lagos.
Additionally, information already presented to the Supreme Court suggests that Petro Union may have obtained the judgments at lower courts by allegedly providing evidence that appears to be based on falsehoods, forgery, misrepresentation of facts, and concealment.
Given Nigeria’s increasing debt profile, many observers are alarmed by the prospect of this additional £15 billion ‘debt’ looming over the nation. They are looking to the Supreme Court to deliver justice in this complex matter.
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