by Thinus Ferreira
Nigeria's consumer protection agency is dragging MultiChoice Africa's Nigerian division to court over its 22% DStv price hike - MultiChoice Nigeria's second price increase in the struggling West African country in a year.
Nigeria's Federal Competition and Consumer Protection Commission (FCCPC) ordered MultiChoice Nigeria and its CEO John Ugbe to halt the company's 22% price hike that came into effect from March and in late-February was summoned to an "investigative hearing".
Nigeria's FCCPC which hasn't gone after other private commercial companies in Nigeria that have also jacked up its prices due to Nigeria's ongoing worsening economic environment and weakening local currency, in a statement slammed MultiChoice for defying its "order" not to increase its prices.
"MultiChoice Nigeria had been expressly directed by the FCCPC on 27 February 2025 to maintain its current pricing structure for DStv and GOtv pending the conclusion of an examination of its proposed price hike."
"However, despite this directive, the company proceeded with its price increase on 1 March 2025 in clear defiance of the commission’s directive."
"Following this blatant disregard for regulatory oversight, the FCCPC has filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court, Lagos Judicial Division, on three counts of offences for willfully obstructing the commission's inquiry by implementing a price hike contrary to directives," the FCCPC noted in a statement.
"The commission views MultiChoice’s actions as a deliberate and calculated attempt to undermine regulatory authority, disrupt market fairness, and deny Nigerian consumers the protection afforded under the law."
"By disregarding the FCCPC’s directive and implementing the price hike before appearing before the commission's investigative hearing on 6 March 2025, MultiChoice has not only flouted regulatory processes but also demonstrated a pattern of conduct that undermines consumer rights and fair competition," the FCCPC says.
It's not the first time MultiChoice Nigeria has ignored Nigerian government orders not to go ahead with price increases and not the first time MultiChoice Nigeria has been dragged to court over price increases.
Over the past number of years MultiChoice Nigeria has been singled out several times by Nigerian politicians and agencies over its price hikes.
Yet, numerous private companies trying to do business in Nigeria's struggling economy with rampant inflation have been forced to increase prices for their goods and services regularly.
Besides the FCCPC, Nigeria's House of Representatives also called on MultiChoice not to go through with its latest price hike, passing a resolution during a sitting on Tuesday.