Showing posts with label Nnamdi Dimgba. Show all posts
Showing posts with label Nnamdi Dimgba. Show all posts

Wednesday, September 12, 2018

BREAKING. Nigerian court rules against MultiChoice Nigeria for a second time; says interim injunction against the price hike of Naspers' pay-TV service in the West African country stands.


In yet another pummeling, the situation is steadily worsening for MultiChoice Nigeria where the Nigerian Federal High Court has ruled against Naspers' pay-TV service in the West African country by rejecting MultiChoice Nigeria's appeal against an interim injunction ordering it to stop it's DStv subscription fee price hike that came into effect since August.

In August, MultiChoice Nigeria increased DStv Nigeria subscribers' monthly subscription fees for the first time since May 2017.

Complaining Nigerians are comfortably clueless that even with the DStv price hike they're still paying less in Africa's second largest pay-TV market than DStv subscribers in other countries like South Africa despite it having a better economy and stronger currency.

MultiChoice Africa in fact absorbed massive losses suffered in Nigeria the past 3 years due to its tanking currency, that took a huge bite out of its overall profit in Africa (excluding South Africa) - something that the rest of MultiChoice Africa's business on the continent essentially had to "cross-subsidize" after Nigeria became a profit-destroying black hole.

The onslaught against MultiChoice Nigeria comes as the West African nation with its struggling economy, depreciating naira currency, rampant inflation and an upcoming election in February 2019, has gone to war against several multi-national companies doing business in the country.

This includes several South African firms with a local Nigerian presence, ranging from MTN Nigeria to Standard Bank (Stanbic IBTC Bank) all suddenly the target to see what further money can be fleeced from them.

The ominous and draconian attack on companies - including on MultiChoice Nigeria that has struggled the past few years but remained committed to stay in Nigeria - will scare away foreign investors and ongoing foreign investment in president Muhammadu Buhari's Nigeria.

Nigeria's belligerent, confused and corrupt Consumer Protection Council (CPC) got a temporary injunction against MultiChoice Nigeria on 23 August, forcing the company to somehow halt its subscription increase weeks after it already went into effect, and now already in effect for its second month in September.

Judge Nnamdi Dimgba of the Federal High Court Abuja granted the injunction, saying that "the interim injunction restraining MultiChoice Nigeria or its agents and representatives was to halt its continuing implementation of any increase in subscription rates".

MultiChoice Nigeria then lodged an appeal against the interim injunction, but Judge Nnamdi Dimgba has now rejected it.

Judge Nnamdi Dimgba also refused MultiChoice Nigeria's application to apparently adjourn the case indefinitely and it was adjourned to 9 October 2018.

Wednesday, August 29, 2018

Nigerian court says injunction against MultiChoice Nigeria's new DStv price hike remains in effect, as the shocking court action of the country's belligerent consumer council damages the country's free market perception.


A Nigerian court has said MultiChoice's has to stick to the injunction after the pay-TV operator brought an appeal application to set aside a temporary injunction, granted last week, prohibiting MultiChoice Nigeria from going ahead with its latest DStv price hike that came into effect since August.

In August, MultiChoice Nigeria increased DStv Nigeria subscribers' monthly subscription fees for the first time since May 2017.

DStv Nigeria subscribers using the service of Naspers' pay-TV arm in the West African country are still paying the least in sub-Saharan Africa for the same content, compared to what DStv subscribers in South Africa and elsewhere in Africa have to pay and where price hikes happen like clockwork annually, despite having better economies and stronger currencies.

Although Naspers' DStv and GOtv pay-TV services are non-essential, luxury services, many consumers - including in Nigeria - have developed a warped consumer mindset where they perceive having DStv or GOtv in their homes as a must-have necessity, like basic services.

Although in theory a free-market economy, Nigeria's sliding economy with it's constantly weakening naira currency, now seems set to want to legislate what private companies, providing private services or products, are "allowed" to charge customers - for instance what a Gucci bag or an Emirates flight ticket in Lagos might be priced at.

Nigeria that struggles with a rampant inflation rate currently at 19%, and the ongoing weakening of the naira, wants to force private companies not to charge what a consumer market will freely bear or reject, but rather legislate blatant artificial price fixing.

This is something that is going to drive private multinational companies away from Nigeria as a possible investment destination and give international companies that have not yet fled the nation's tanking economy pause as to whether they should continue to invest in Nigeria.

Meanwhile biased and uninformed naija press, marinating in the public hate-stew that's been building against MultiChoice Nigeria the past few years, are salivating over running salacious headlines since last week like "MultiChoice battles Nigeria". 

Last week Nigeria's belligerent and corrupt Consumer Protection Council (CPC) got a temporary injunction against MultiChoice Nigeria on 23 August, forcing the company to somehow halt its subscription increase weeks after it already went into effect.

Nigeria's Consumer Protection Council has done nothing to improve Nigeria's rampant, daily electricity blackouts or to address exorbitant data and cellphone service prices, but continues to target MultiChoice Nigeria.

Yet Judge Nnamdi Dimgba of the Federal High Court Abuja granted the injunction, saying that "the interim injunction restraining MultiChoice Nigeria or its agents and representatives was to halt its continuing implementation of any increase in subscription rates or price review policy imposing increased charges and costs on the consumers".

This past Friday, MultiChoice Nigeria spokesperson Caroline Oghuma said the injunction by the CPC is "an affront to the free market economy" and that MultiChoice Nigeria is filing a notice of appeal.

"In light of the application for a stay of execution, the status quo therefore prevails," said MultiChoice Nigeria, saying the price increase will remain in effect. "MultiChoice Nigeria will always operate within the ambit of the law and will continue with the authorities to ensure the best outcome for our customers."

"We remain committed to providing the best quality of entertainment and premium content at the best possible prices."

Babatunde Irukera, director-general of Nigeria's CPC, told Judge Nnamdi Dimgba on Tuesday that MultiChoice Nigeria said publicly that it refused to comply with the injunction.

"The evidence is that the defendant has declined to comply with the order of the court. In a public statement, MultiChoice characterized the court order as an affront, and repeatedly said to subscribers who tried to renew their subscriptions pursuant to the court order that it will not, and has no intention of obeying the order."

On Tuesday Judge Nnamdi Dimgba about MultiChoice Nigeria's appeal application to have the injunction set aside, said "my order is in force. I believe it is in force until it is set aside. My order has to be obeyed. That is my position."

The matter has been adjourned to 3 September.