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FG to MultiChoice: Justify price hike or face sanctions

Oladapo RiliwanbyOladapo Riliwan
26/02/2025
in News
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Mr. John Ugbe, Managing Director, MultiChoice Nigeria, is seen in the photo above.The Federal Competition and Consumer Protection Commission (FCCPC) has directed MultiChoice Nigeria to justify its planned subscription price increase or face regulatory penalties and sanctions. Image credit: MultiChoice.

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The Federal Government has directed MultiChoice Nigeria to justify its planned subscription price increase for its pay-tv service in the country or face regulatory sanctions.

According to the statement released by MultiChoice, the company has formally notified the FCCPC of the price adjustment, which is set to take effect on March 1, 2025.

The Federal Competition and Consumer Protection Commission (FCCPC), which is exercising its authority under the Federal Competition and Consumer Protection Act (FCCPA), announced that it has directed the Chief Executive Officer of MultiChoice Nigeria to appear for an investigative hearing at its headquarters on February 27, 2025.

fg-tasks-multichoice-nigeria-on-price-hike
Tunji Bello, Executive Vice Chairman and Chief Executive Officer of the Federal Competition and Consumer Protection Commission (FCCPC). Image credit: FCCPC X handle.

The investigative hearing follows MultiChoice’s formal notification of the price adjustment, which the nation’s competition regulator says “raises concerns about recurrent unilateral price hikes, potential market dominance abuse, and perceived anti-competitive practices in the pay-TV industry.”

FCCPC: MultiChoice applies different pricing strategies in other markets

“Exercising its mandate under Sections 32 and 33 of the FCCPA, the FCCPC directed the Chief Executive Officer of MultiChoice Nigeria to attend an investigative hearing at the Commission’s headquarters on Thursday, February 27, 2025,” the competition regulator says.

The investigative hearing follows MultiChoice’s formal notification of the price adjustment, which the nation’s competition regulator says “raises concerns about recurrent unilateral price hikes, potential market dominance abuse, and perceived anti-competitive practices in the pay-TV industry.”

The FCCPC also underscores consumer complaints that MultiChoice applies different pricing models across various markets, fueling concerns about unfair treatment of Nigerian consumers.

“The FCCPC is deeply concerned that Nigerian consumers continue to face frequent price increases, amid accusations that MultiChoice applies different pricing strategies in other markets, heightening questions about fairness and market abuse,” the statement adds.

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The Commission warned that failure to provide “satisfactory explanations” or any violation of “fair market principles” would leave it with “no other option than to impose regulatory penalties, sanctions, or other corrective measures to protect Nigerian consumers.”

Additionally, the FCCPC says that it is “engaging the sector regulator and other relevant agencies to ensure fair competition and consumer protection within Nigeria’s broadcasting and digital subscription landscape.”

Analysts says that with the investigative hearing scheduled in the coming days, the outcome could set a precedent for stronger regulatory oversight on pricing strategies in Nigeria’s pay-TV industry.

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Tags: MultiChoiceFCCPCFederal Competition and Consumer Protection CommissionMultichoice Nigeria
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