Nigeria stops DSTV from increasing subscription fees

KoyeroMay 1, 20242 Mins read

Across Africa, DStv subscription fees are increasing faster than several exchange rates. In April 2023, MultiChoice increased fees for its DStv and GOtv bouquets by 4.8% across several countries. By November 2023, it announced another 18% price hike in Nigeria, and its southern Africa countries. According to the company, the hikes were inescapable as the cost of its business operations kept rising with inflation.

Three price hikes in one year: In the early hours of April 24, Multichoice announced a 25% increment to its customers, which was scheduled to take effect from today, May 1.

But Nigeria has had enough of the hikes: The Federal Competition and Consumer Protection Commission (FCCPC), the agency saddled with the function of promoting fair, efficient and competitive markets in Nigeria, and the National Broadcasting Commission (NBC) and the Nigerian Communications Commission (NCC) has started investigating the reason for the hike in price.

This investigation comes after a petitioner sued MultiChoice for the price hikes and sought an injunction barring the company from increasing its prices. A three-member Competition and Consumer Protection Tribunal (CCPT), which heard the petition, delivered a ruling on Monday restraining MultiChoice from increasing its tariffs and cost of products and services scheduled to begin on May 1.

The tribunal also ordered that the injunction remain in effect until a final decision is made on the case. All parties in the lawsuit are required to appear in court on May 7th, 2024 at 10:00 am to discuss the case further.

Nigerians react: The increment riled Nigerians up across social media with some netizens advising others to abandon the pay TV. An X user, TheMahleek, tweeted, “DSTV premium subscription don pass a minimum wage. Na to dey watch EPL from WhatsApp status.” Another X user, OlamideOfficial said, “Someone needs to explain to me like a 2-year-old why DSTV keeps increasing their subscription packages”.

MultiChoice has its reasons: In a four-page letter submitted to the FCCPC, MultiChoice may have answered OlamideOfficial’s question, detailing the reasons for the price hikes in their cable services. Adamu Abdullahi, acting executive vice chairman of FCCPC revealed in an interview with Channels Television that the company cited the cost of electricity, generator operations and the cost of dollars for some spare parts are some of the reasons for the price increase. He continued in the interview saying the FCCPC suspects the company may be abusing their market position by engaging in unfair practices.

Abdullahi explained that limited consumer choice in the market allows this company to potentially act with impunity. “If the FCCPC confirms these suspicions, they will take legal action as mandated by their authority,” he said.The whole country will now wait for the tribunal’s final judgement to see if the hike will be effected.