MultiChoice Overrules Nigerian FCCPC on Subscription Fee Increase

MultiChoice has implemented price hikes for its DStv and GOtv services despite a ruling from Nigeria’s FCCPC that deemed such increases unacceptable. The price increases took effect on March 1, 2025. The FCCPC has summoned MultiChoice’s CEO for an investigative hearing scheduled for March 6, following reports of significant subscriber losses.

MultiChoice has disregarded a ruling from Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) concerning increases in subscription fees for its DStv and GOtv services. Initially, MultiChoice sought to maintain existing subscription rates while entering discussions with the FCCPC regarding this issue. However, the company proceeded with the price hikes, which were announced on February 27, 2025, and took effect on March 1, 2025.

In response to the implementation of the price increases, the FCCPC has summoned MultiChoice’s Chief Executive Officer to a meeting to discuss the matter further. Ondaje Ijagwu, the FCCPC’s Director of Corporate Affairs, stated that the company is required to attend a rescheduled investigative hearing on March 6, 2025, alongside all relevant officials and a full report on the situation.

Data from November 2024 indicated that approximately 243,000 Nigerians had opted not to renew their subscriptions between April and September 2024, a trend attributed to declining macroeconomic conditions. Additionally, the MultiChoice Group revealed a significant 30.77 percent decrease in subscriber revenue originating from Nigeria for the fiscal year ending in March 2024.

In summary, MultiChoice has chosen to implement price increases for its services despite a ruling from Nigeria’s FCCPC prohibiting such actions. The commission has scheduled a hearing for the company’s executives to discuss the raised prices, amidst concerns over the impact on subscriber retention due to economic factors. The situation remains tense as stakeholders await the outcome of the inquiry set for March 6, 2025.

Original Source: www.advanced-television.com