- The Federal Competition and Consumer Protection Commission (FCCPC) has asked MultiChoice Nigeria to halt its proposed hikes in DStv and GOtv prices
- The commission disclosed that it is currently investigating the proposed price hikes, asking the firm to maintain the current subscription prices
- FCCPC summoned MultiChoice Nigeria’s chief executive officer to defend the planned subscription price hikes
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Federal Competition and Consumer Protection Commission (FCCPC) has asked MultiChoice Nigeria to maintain the current DStv and GOtv subscription prices pending an investigation into the proposed price increase.
On February 24, 2025, the PayTV company officially announced another increase in subscription prices for its GOtv and DStv channels.
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MultiChoice’s new subscription prices
The development came almost one year after the company hiked its subscription rates.
According to the company, starting March 1, 2025, customers on the DStv premium plan will pay N44,500 instead of N37,000, and Compact+ subscribers will pay N30,000 instead of N25,000.
Additionally, customers on the Compact plan will pay N19,000 from 17,000.
The recent price hike outraged Nigerians who lamented the absence of strong competition against the South African-based company.
FCCPC asks MultiChoice to suspend price hikes
The public outrage caused the FCCPC to intervene, asking the company to suspend the planned increases.
On Tuesday, February 25, 2025, the FCCPC asked MultiChoice Nigeria's chief executive officer to appear at its headquarters on Thursday, February 27, 2025, for an investigative hearing regarding the PayTV company’s planned hikes in DStv and GOtv subscription prices.
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Ondaje Ijagwu, the director of corporate affairs at FCCPC, said the commission order follows MultiChoice Nigeria’s request for an extension concerning its scheduled appearance before the commission.
He said:
“While the FCCPC has granted the request, the company is now required to attend the rescheduled investigative hearing on March 6, 2025, along with all relevant officers and a comprehensive response.”
FCCPC summons MultiChoice Nigeria CEO
The commission disclosed that under the current directive, MultiChoice is asked to maintain the current price structure as of February 27, 2025, pending the commission’s review and final determination.
Ijagwu said maintaining the status quo on pricing is important to prevent potential consumer harm during the period, saying further updates will be given as the investigation continues.
MultiChoice Nigeria has been embroiled in a court battle with consumers regarding the last increases.
MultiChoice suffers subscriber loss
In November last year, the company disclosed that about 243,000 Nigerians refused to renew their subscriptions between April and September 2024 due to the drop in Nigeria’s macro and consumer environment.
The company noted that high inflation at 32.70 affected subscribers in Nigeria.
Multichoice disclosed this in its financial statement released on Tuesday, November 12, 2024, saying that over 566,000 non-South African subscribers ended their subscriptions in the period under review.
MultiChoice suffers revenue loss
Earlier, the MultiChoice Group disclosed a 30.77% decline in subscriber income from Nigeria for the full fiscal year that concludes in March 2024
Despite the price hike of subscription fees two times, BusinessDay reported that revenue decreased to $341.72 million from $493.59 in the prior year.
The company attributed this decrease to several factors, including increased fuel costs, historically high inflation above 33%, and the naira depreciation.
MultiChoice writes off $21m in Heritage Bank
Legit.ng earlier reported that following the liquidation of Nigeria's Heritage Bank earlier this year, MultiChoice Group Limited had written off the $21 million that was deposited with the bank.
The company's interim financial results for the half-year that ended on September 30, 2024, included this piece of information.
Following the Central Bank of Nigeria's revocation of Heritage Bank's operating license, which essentially closed the bank, the amount was deemed irrecoverable.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
