What a nation: “A Federal High Court in Abuja, on Monday, has ordered the stoppage of the planned increase in DStv and GOtv subscription prices by Multichoice Nigeria.” Yes, a court has aborted MultiChoice’s plan to raise subscription prices of its products.
Good People, I do not like this playbook by our courts. I hate it when courts influence markets this way. I have been checking when the court will rule on a case brought by some citizens, against the electricity regulator, for putting customers in pricing bands. Those customers had posited that they were being discriminated against, by using their locations to determine the prices they pay for electricity. They have no response yet, but they have time for DStv and GOtv.
Personally, I do think the increase on these products makes sense considering that Naira has lost value against the pounds. This attitude of the court is very unfortunate. I do not understand how watching the European Champions League is enshrined in the Nigerian constitution for the judges to become this involved over years, on this matter.
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I do not live in Nigeria to care about DStv. But what I know is that DStv’s core product (European football) is a foreign product, created in Europe. If MultiChoice does its agreements every 5 years, there is a likelihood that it paid for its current rights when Naira was going for say N415/$. It paid the Europeans in foreign currency and never in Naira. If that remains the case, and with Naira hovering around N1000/$, if MultiChoice does not increase price, it has to be assessed for running a charity as a for-profit company.
I get it, the price of DSTv is more expensive compared with prices in Kenya and South Africa. Unfortunately, the person has not considered that every business in Nigeria runs its own security unit, waterboard, electricity board via generators, etc, and there is no way any business can have those costs, and still deliver prices which are comparable in other markets.
Last year, MultiChoice recorded massive losses in its business. That is partly coming because it has struggled to align its prices, as courts have made that nearly impossible. Indeed, MultiChoice offers customers multiple choices, but here, it has only a single choice to remain in business: jack up prices since it cannot return to Europe to renegotiate rates because the Naira has crashed! But Nigerian courts do not agree! That is unfortunate!
What a nation: “A Federal High Court in Abuja, on Monday, has ordered the stoppage of the planned increase in DStv and GOtv subscription prices by Multichoice Nigeria.” Yes, a court has aborted MultiChoice’s plan to raise prices of its products.
Good People, I do not like this… pic.twitter.com/4LS18KNmaG
— Ndubuisi Ekekwe (@ndekekwe) April 29, 2024
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When you hear phrases like ‘ease of doing business’, ‘enabling environment’, etc, it does not concern the Executive Branch alone, but also the Judiciary and Legislature. Nigeria is a country of contradictions, even the citizens aren’t sure of what they truly want, so there is confusion all over the place.
Is there anything you cannot go to court and obtain a judgment in your favour? We desecrate things and ridicule ourselves oftentimes, but still call it democracy and rule of law. Those who abused their offices while serving can still run to court and obtain judgment that shield them from prosecution. How exactly do you advance a society by rewarding bad behaviours? Of course you will hear all manners of arguments, but the quality of humans we saddle with decision-making also calls for concern.
Why won’t the economy remain predominantly informal if you regularly get punished by the courts and other agencies for running a formal business? Who reverses the price of garri, petrol or beans? We just have systems that dish out injustices at will but somewhat find ways to justify and defend the unbridled impunity and ineptitude.
MultiChoice has always been a regular punching bag, but cement that is more essential enjoys free pricing.
Nigeria actually pays the lowest subscription fees across all markets where MultiChoice operates. So your statement that DStv in Nigeria is more expensive than Kenya or South Africa is incorrect. Please check your facts before writing.