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Nigerian Watchdog Sues MultiChoice Nigeria Over Price Hike

By  |  March 5, 2025
Nigeria

The Federal Competition and Consumer Protection Commission (FCCPC) of Nigeria has initiated legal proceedings against MultiChoice Nigeria Limited and its CEO, John Ugbe, for breaching regulatory guidelines. According to a statement released on Wednesday, the action comes after MultiChoice Nigeria ignored a directive issued by the FCCPC regarding a proposed price increase for its pay-TV services.

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    Last month, the FCCPC instructed MultiChoice Nigeria to maintain its current pricing for its pay-TV services, including DSTV and GOtv, until a review of the proposed price hike was completed. Despite this directive, the company proceeded with the planned price adjustment on March 1, 2025, an act the commission describes as a clear violation of its oversight.

    In response to this defiance, the FCCPC filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court in Lagos. The lawsuit includes three counts of offenses, with the agency accusing the company of deliberately obstructing its inquiry by going ahead with the price hike despite the explicit order to refrain from doing so.

    A post on the social media platform X (formerly Twitter) by the FCCPC emphasized the agency’s stance, stating, “Following this blatant disregard for regulatory oversight, the FCCPC has filed charges against MultiChoice Nigeria and John Ugbe at the Federal High Court, Lagos Judicial Division, on three counts of offenses for willfully obstructing the commission’s inquiry by implementing a price hike contrary to directives.”

    At the time of reporting, MultiChoice Nigeria had not provided any immediate response to the charges.

    This legal action is the latest in a series of regulatory challenges the company has faced. In 2024, MultiChoice reached a settlement with Nigerian tax authorities, agreeing to pay approximately $37.3 million in taxes for its local subsidiary.

    Source: Reuters