The NCAA is putting sanctions in place against price fixing by both local and international carriers. Price fixing occurs when two or more airlines collude to set prices at artificially high levels, which harms consumers by making them pay more for their flights. This practice also results in airlines making more money, as they are able to charge higher prices. By putting sanctions in place, the Nigerian Civil Aviation Authority (NCAA) is hoping to discourage this behavior and protect consumers from being harmed by it.
NANTA, the National Association of the Nigeria Travel Agencies, addressed the issue of high rates for consumers at their 46th Annual General Meeting. They noted that travel agents in Nigeria are behind compared to those in other countries, such as South Africa, Kenya, the UK, the US, and Europe. The new sanctions will protect consumers from the higher rates and ensure that they are getting the most for their money.
Demand dictates the price of goods and services.
The Nigerian government has also committed to fixing the prices of other key economic products, such as the Naira, Fuel, and Electricity. The rationale behind this decision is to ensure stability in prices, which can be beneficial for businesses and consumers alike. In a free market, supply and demand would typically dictate the prices of goods and services.
However, the government intervention in setting prices can help to ensure that prices do not fluctuate too wildly, which can create instability and make it difficult for businesses to plan ahead. Additionally, by keeping prices relatively stable, businesses are more likely to invest in the Nigerian economy, which can create jobs and help to boost economic growth.
Could create a market for illegal goods and services.
There has long been a difference in pricing between the key industries of products needed by citizens in Nigeria. This has had a large effect on the economy and created a weakening situation for Nigeria. The problem is compounded by the fact that many of the products that are needed by citizens are not produced domestically, and so must be imported. This puts even more pressure on the already weak Nigerian economy.
There is another underlying issue with everything being for sale. Whether this is intentional or not, anything can be bought for a “price”. There are free markets due to corruption and culture. This means that people are able to get what they want without having to go through the hassle of waiting or going through a third party. This could lead to people taking advantage of others and could create a market for illegal goods and services.
Stability can improve access to goods and services.
Fixed pricing is a benefit to consumers who are struggling in a growing economy. By setting a price for goods and services, businesses are able to provide stability and certainty for consumers who may otherwise be unable to afford them. This stability can help improve access to essential goods and services, like food and healthcare, for people who are living in poverty or otherwise struggling to make ends meet.
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