The faceoff between the Nigerian government, consumers and Multichoice Nigeria over hike in subscription tariffs, has continued to deepen. Nigerian consumers, backed by lawmakers, have been asking for a stable subscription price or pay-per-view billing.
Against this backdrop, the South African satellite TV provider, who is parent to DStv and Gotv, popular cable TV service providers in Nigeria, has been on and off the court and the chambers of Nigeria’s National Assembly.
The situation took a new turn after some Nigerians filed a fresh complaint following Multichoice’s recent move to once again increase tariff.
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The Competition and Consumer Protection (CCP) Tribunal sitting in Abuja, ruling in the favor of the plaintiffs, restrained Multichoice Nigeria Limited from increasing its tariffs and cost of products and services scheduled to begin on April 1.
The three-member tribunal, presided over by Thomas Okosun, gave the order following an ex-parte motion moved by Festus Onifade, a legal practitioner, on behalf of himself and the Coalition of Nigeria Consumers.
Other members of the tribunal include Sola Salako Ajulo and Ibrahim EL-Yakubu.
The News Agency of Nigeria (NAN) reports that in the suit marked: CCPT/OP/1/2022, Multi-Choice Nigeria Limited and Federal Competition and Consumer Protection Commission (FCCPC) are 1st and 2nd respondents respectively.
The motion ex-parte filed by the applicants on March 29 was brought pursuant to Section 39 (1) & (2) of FCCPC Act 2018; Order 26, Rule 5 (2), (3) & 26 Rule 6 (1) & (2) Federal High Court (Civil Procedure) Rules 2019 and Section 47(a), (b), (c),(d), of Federal Competition and Consumer Protection Act 2018.
The applicants had prayed for “an order of interim injunction restraining the 1st defendants/respondents, either by itself, agents, representatives, officers or privies, howsoever described, from carrying out the impending increase in tariffs and cost of its products and services intended to take effect from 1st April, 2022, until the hearing and determination of the motion on notice already filed before this tribunal.
“An order of the Honourable Tribunal mandating the 1st defendant/respondents to maintain status quo pending the hearing and determination of the motion on notice.
“And for such further order or other orders as this Honourable Tribunal may deem fit to make in the circumstance.”
In the ruling, the tribunal ordered Multichoice Nigeria Limited to stop the planned hike in tariffs and cost of its products and services pending the hearing and determination of the motion.
“The 1st defendant/respondent is hereby restrained, either by itself, agents, representatives, officers or privies, howsoever described, from carrying out the impending increase in tariffs and cost of its products and services intended to take effect from 1st April, 2022 until the hearing and determination of the motion on notice already filed before this Honourable Tribunal.
“The 1st defendant/respondent is hereby mandated to maintain status quo pending the hearing and determination of the motion on notice,” the tribunal ruled.
The matter was adjourned until April 11 for the hearing and determination of the motion on notice.
“All parties in this suit are to appear before this Honourable Tribunal on the 11th day of April, 2022,” it ruled.
How long would this continue?
Multichoice services have been the most opposed in Nigeria when it comes to tariff increase, apart from petroleum products. While other companies have without confrontation, been increasing the cost of their products and services.
In 2020 when Multichoice attempted to increase tariff, it drew a national uproar that forced the Nigerian National Assembly to intervene, asking the South African company to suspend its plan or otherwise, provide pay-per-view billing for Nigerian consumers. Since then, every other company operating in Nigeria has nearly doubled the price of their products and services without opposition, even Nigerian-based companies.
Earlier this month, the Nigerian government quietly removed electricity tariff, and petroleum pump price has repeatedly been increased in recent times. The price of Dangote Cement is said to be higher in Nigeria than other countries across Africa where the product is available.
Inflation is at 16.87% as of January 2022, according to the Nigeria Bureau of Statistics (NBS), pumping the cost of everything in Nigeria. Experts are baffled that despite this reality, Nigerian consumers still want Multichoice’s bouquets tariffs stagnant, even though compared to other African countries where the cable network is operational, Nigeria still has the cheapest rates.
Experts said that the Nigerian government’s actions amount to forcing price control on a foreign company and it would likely spook investors – and for a country looking for foreign direct investments, it’s an own goal.