Court Reserves Ruling in MultiChoice, FCCPC Price Hike Dispute
The Federal High Court in Abuja has reserved its judgment on the ongoing legal battle between MultiChoice Nigeria and the Federal Competition and Consumer Protection Commission (FCCPC) regarding the recent hike in DStv and GOtv subscription fees. Justice James Omotosho has set May 8, 2025, as the date to deliver the much-anticipated verdict after hearing arguments from both sides.
The central issue is whether the FCCPC holds the authority to regulate the pricing decisions of MultiChoice. MultiChoice’s legal team, led by Senior Advocate N.J. Onigbanjo, contends that Nigeria’s free-market economy allows service providers to set prices without regulatory approval. He emphasized that the FCCPC Act does not grant the commission the power to regulate such prices, with price control only resting with the President.
Onigbanjo further pointed out that MultiChoice had informed the FCCPC of its planned price increase in a letter dated February 21, 2025. Despite this, on February 27, 2025, the FCCPC ordered the company to suspend the hike. In response, MultiChoice filed a suit on March 3, challenging the commission’s directive, asserting that the company was unfairly targeted despite other service providers also increasing their prices.
On the other hand, FCCPC’s counsel, Prof. J.E. Agbugu, SAN, defended the commission’s actions, arguing that the FCCPC acted within its statutory mandate to protect Nigerian consumers from unjust price hikes. He referred to Sections 17(e) and 17(f) of the FCCPC Act, which empower the commission to investigate and intervene in price increases that may be exploitative to consumers. Agbugu stressed that while the FCCPC does not set prices, it has the authority to scrutinize any increases to ensure they are not harmful to the public.
Agbugu also rejected MultiChoice’s reliance on a prior ruling by the Competition and Consumer Protection Tribunal (CCPT), stating that the tribunal’s decisions do not supersede those of the Federal High Court. He emphasized that MultiChoice had failed to engage with the FCCPC despite being invited to explain the basis of its price hike.
During the proceedings, the court granted an oral prayer allowing the FCCPC to regularize its counter-affidavit and struck out an interlocutory injunction previously sought by MultiChoice, ruling that it had become irrelevant due to the progression of events. Justice Omotosho, during the hearing, questioned whether the government could intervene and impose price controls in a free-market economy to safeguard consumers.
Onigbanjo reiterated that only the President of Nigeria had the authority to impose such controls, noting that no directive had been issued in that regard. The tension builds as Nigerians await the court’s decision, with the outcome potentially affecting the cost of living for many.
The price increase, which took effect on March 1, 2025, saw subscription fees for DStv and GOtv packages rise by as much as 25%. DStv Compact increased from N15,700 to N19,000, Compact Plus from N25,000 to N30,000, DStv Premium from N37,000 to N44,500, and GOtv Supa Plus from N15,700 to N16,800.
Despite the FCCPC’s challenge and its demand for a suspension of the price hike, MultiChoice proceeded with the adjustment. As a result, the FCCPC filed a lawsuit at the Federal High Court, intensifying the ongoing battle over the company’s pricing power.
