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    Home - Court Stops Federal Govt From Sanctioning MultiChoice Over Prices Increase

    Court Stops Federal Govt From Sanctioning MultiChoice Over Prices Increase

    By Maimuna Bashir IsaMarch 12, 2025
    Multichoice

    THE Federal High Court in Abuja on Wednesday restrained the Federak Govt through the Federal Competition and Consumer Protection Commission (FCCPC) from taking any administrative steps against MultiChoice Nigeria Limited following its DStv and GOtv price increases.

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    Justice James Omotosho issued the order in an ex parte motion filed by MultiChoice’s lawyer, Moyosore Onibanjo (SAN), against the FCCPC in a suit marked FHC/ABJ/CS/379/2025.

    The FCCPC had summoned MultiChoice Nigeria to provide explanations regarding the price review.

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    The Commission had directed the company’s Chief Executive Officer to appear for an investigative hearing on February 27, 2025, raising concerns over frequent price hikes, potential market dominance abuse, and anti-competitive practices within the pay-TV industry.

    The FCCPC also issued a stern warning, stating that failure to justify the price adjustment or comply with fair market principles would lead to regulatory sanctions.

    In the ex parte motion filed by MultiChoice’s legal team, led by Onibanjo, the pay-TV company sought an order of interim injunction restraining the FCCPC and its officers from carrying out the threatened prosecution of MultiChoice, as communicated via a letter dated March 3, 2025, pending the hearing and determination of the motion for an interlocutory injunction.

    MultiChoice also prayed for “An order restraining the FCCPC and its officers from issuing any further directive or taking any steps capable of disrupting the business activities of MultiChoice pending the hearing and determination of the motion for an interlocutory injunction.

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    “An order of interim injunction restraining the FCCPC, its agents, servants, or privies from sanctioning or penalizing MultiChoice (the applicant) in any manner whatsoever in relation to its price increase pending the hearing and determination of the motion for an interlocutory injunction.”

    Citing the grounds for the application, Onibanjo submitted that Nigeria operates a free-market economy where prices of goods and services are not regulated.
    He argued that the FCCPC Act and other enabling laws do not grant the Commission the authority to regulate prices or require businesses to seek approval before adjusting the cost of their services.

    Nigerian TAX Reform - Federal Goverment

    He added that MultiChoice had communicated its intention to increase prices via a letter dated February 21, 2025.

    He added, however, that the FCCPC, in a letter dated February 27, 2025, ordered the pay-TV company to suspend its planned price increase.

    Following this, he stressed that MultiChoice filed a suit on March 3, 2025, challenging, among other things, the FCCPC’s power to regulate prices or suspend its price adjustment.

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    “The applicant, after filing the suit, proceeded with the planned price increase,” Onibanjo stated.

    The senior lawyer told the court that despite the pending suit, the FCCPC threatened to prosecute MultiChoice via a letter dated March 3, 2025, if it failed to provide reasonable justification for disregarding the directive to suspend the price increment.

    In an affidavit deposed by Gozie Onumonu, Head of Regulatory Affairs and Government Relations at MultiChoice, the company argued that its subscription rates in Nigeria are the lowest among all the countries where it operates.

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    At the hearing on Wednesday, Onibanjo referenced his ex parte motion and urged the court to consider a further affidavit showing that the FCCPC had already taken steps despite the ongoing litigation.

    After hearing the lawyer’s oral application, Justice Omotosho restrained the FCCPC from taking any “administrative steps” against MultiChoice pending the determination of the case.

    The judge also ordered an accelerated hearing on the matter and fixed March 27, 2025, for the hearing.

    MultiChoice had informed its customers about a planned price increase across its DStv and GOtv packages, set to take effect on March 1, 2025.

    Under the proposed adjustment, the DStv Compact bouquet would rise from ₦15,700 to ₦19,000 (a 25% increase). The Compact Plus package would go up from ₦25,000 to ₦30,000 (a 20% hike), while the DStv Premium plan, the highest-tier package, would increase from ₦37,000 to ₦44,500 (a 20% increment).

    GOtv subscribers would also be affected, with the Supa Plus plan rising from ₦15,700 to ₦16,800, among other adjustments.

    In response to these planned increases, the FCCPC summoned MultiChoice Nigeria to provide explanations regarding the price review and later sued the pay-TV company at a Lagos High Court over alleged violations of regulatory directives and obstruction of an ongoing inquiry.

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