Apparently railing against what it described as the profiteering tendencies of the operators of the Digital Satellite Television, a Sub-Saharan African direct broadcast satellite service owned by MultiChoice and based in South Africa, the Federal Competition and Consumer Protection Commission (FCCPC) is not sparing any effort at its disposal to get a good bargain for the consuming publics, reports Ibrahim Apekhade Yusuf
When MultiChoice Nigeria announced plans to implement a 21% price increase for DStv and GOtv services, effective March 1, 2025, little did it know that it was going to meet with any form of opposition.
Expectedly, since the decision took effect there have been a series of complaints by consumers many of who perceived the increase as exploitative and discriminatory, especially given price reductions for South African subscribers, and concerns about poor value for money despite persistent service issues.
Crux of the matter
The increase has been met with strong criticism, particularly from consumer groups like “Save the Consumers,” who describe it as exploitative and discriminatory, and fueled by the fact that MultiChoice reduced prices for South African subscribers by 38% during the same period.
This disparity is seen as a double standard, with some arguing that it amounts to economic discrimination against Nigerian consumers.
More vexing according to concerned stakeholders is the perennial issue of repetitive content, frequent service disruptions and poor value for money being experienced by the consuming public.
Complaints about these issues have been persistent, yet MultiChoice has not addressed them adequately, according to consumer groups.
FCCPC to the rescue
The Federal Competition and Consumer Protection Commission (FCCPC) has investigated MultiChoice’s price increases, citing concerns about market dominance and anti-competitive behavior.
The FCCPC had instructed MultiChoice to maintain its existing pricing structure pending an investigation, but MultiChoice proceeded with the price hike.
The FCCPC has since initiated legal charges against MultiChoice and its CEO for defying regulatory directives.
However, MultiChoice claims the price hike is necessary to deliver “world-class content” and to address rising operational costs.
This is just as consumer groups have argued that this justification is insufficient, given the persistent issues faced by subscribers and the contrasting treatment of South African subscribers.
A court case is underway between the FCCPC and MultiChoice, with a judgment date set for May 8, 2025.
The case revolves around MultiChoice’s decision to proceed with the price hike despite the FCCPC’s directives.
The court is expected to rule on whether MultiChoice’s actions are in violation of the Federal Competition and Consumer Protection Act (FCCPA) 2018.
A non-governmental Organisation (NGO), Save the Consumers, has strongly condemned the recent 21 per cent price increase imposed by MultiChoice Nigeria on its DStv and GOtv services, effective March 1, 2025.
The group, which is committed to defending consumer rights, noted that the price adjustment was in stark contrast to the company’s decision to reduce prices by up to 38 per cent and enhance value for its South African subscribers during the same period.
It described the action as “not only insensitive and exploitative, but also blatantly discriminatory”.
In a statement, Executive Director, Save the Consumers, Dr. Aliyu Ilias, said, “Coming less than a year after the May 2024 price hike in Nigeria, the new increase openly defies a directive from the Federal Competition and Consumer Protection Commission (FCCPC) to suspend all price adjustments pending the conclusion of ongoing investigations.
“It reflects MultiChoice’s clear disregard for both Nigerian consumers and regulatory authority.
“Even more troubling is the company’s simultaneous enhancement of service offerings and reduction of prices for South African customers.”
He said, “In South Africa, MultiChoice has lowered fees on various products, added new channels, and introduced features that improve the user experience, all while acknowledging the financial pressures faced by South African households.
“This double standard, lowering prices at home while increasing them in Nigeria, amounts to economic discrimination and reinforces long-standing concerns about MultiChoice’s exploitative approach toward the Nigerian market.
“It is indefensible for MultiChoice to cite inflation in Nigeria as justification for the hike while offering consumer-friendly pricing in South Africa. This reflects a disturbing double standard, with Nigerian consumers continuing to suffer under a near-monopolistic market structure that MultiChoice exploits with impunity.”
The group further alleged that while MultiChoice claimed the price hike was necessary to deliver “world-class content,” Nigerian subscribers still face persistent challenges that remain unaddressed despite repeated complaints.
“These include repetitive content, frequent service disruptions, and poor value for money. Rather than resolving these issues, MultiChoice has chosen to penalise its loyal Nigerian customers with higher prices, once again proving that profit, not service or fairness, is its primary motivation,” it stated.
Continuing, the statement said, “Meanwhile, South African subscribers benefit from reduced pricing, such as the ‘Add Movies’ bolt-on slashed by 38 per cent to R49, alongside additional channels and enhanced streaming features.
“MultiChoice CEO Byron Du Plessis’s justification that these changes are due to ‘financial pressures faced by households’ further demonstrates the company’s hypocritical and disingenuous treatment of Nigerian consumers, who are themselves grappling with a severe cost-of-living crisis.”
The group further declared that MultiChoice’s dominance in Nigeria’s pay-TV sector, enabled by a lack of effective competition, had emboldened its monopolistic practices.
It said the ease with which the company increases prices without fear of losing market share highlights the urgent need for regulatory intervention, adding that Nigerian consumers are effectively held captive in a market where choice is limited and abuse is rampant.
The NGO also urged the National Broadcasting Commission (NBC) to take decisive steps to foster genuine competition in the pay-TV sector and dismantle MultiChoice’s stranglehold on the market.
The statement said, “Save the Consumers demands the immediate reversal of the March 2025 price hike, compensation for subscribers affected by repeated, unjustified price increases and service deficiencies, and full compliance with the FCCPC’s directive.
“We urge the FCCPC to initiate legal proceedings against MultiChoice for its defiance of regulatory orders and its disregard for consumer welfare.
“A transparent investigation into its pricing model, service quality, and compliance with Nigerian competition and consumer protection laws is essential.
“We call on Nigerian consumers to explore alternative platforms and consider boycotting DStv and GOtv until MultiChoice demonstrates genuine respect for their rights.”
It further declared that MultiChoice’s discriminatory pricing, rewarding South African subscribers with lower costs and better services while exploiting Nigerians, was a “glaring example of unchecked corporate greed.
“Save the Consumers stands firmly with Nigerian subscribers in rejecting this injustice and calls on all stakeholders to hold MultiChoice accountable.
“The Nigerian market deserves dignity, not exploitation. No company should be allowed to operate above the law or treat Nigerian consumers as second-class subscribers,” the statement added.
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A counterpoise argument
In what may be a counterpoise argument, another non-governmental organisation, Association for the Defense of the Nigerian Economy, ADNE, has dismissed claims that the recent price adjustments by pay television company, MultiChoice, were discriminatory against Nigerians.
ADNE made its views known in a statement issued in Lagos, yesterday, in response to media reports quoting a civil society organisation, Save the Consumers, as saying that MultiChoice increased prices by 21 per cent in Nigeria, while reducing it by 38 per cent in South Africa.
Signed by Jacob Agunbiade, its Executive Director, the statement described claims of discrimination as products of laziness and illiteracy in economic matters
“What Save the Consumer was aimed at misleading the consumer. It was lazy and dishonest. Otherwise, they would have checked on the Internet what it costs to be a DStv customer in both countries. That is the way to make an informed contribution,” the statement said.
ADNE said its research team discovered that Nigerian DStv subscribers pay lower than their South African counterparts. It noted that the recent MultiChoice price adjustments were a response to high inflation, rising operational costs, and volatility in foreign exchange rates.
ADNE noted that in South Africa subscribers will be affected by new pricing, effective April 1. With the new rates, DStv Premium subscribers in South Africa will pay ZAR 979, equivalent to $53.82 at the current exchange rate of 18.19 ZAR to 1 USD. The current rate, which will soon be obsolete, ADNE said, is 18.97 ZAR to the dollar.
The group equally noted that in 2023 and 2024, when South African DStv subscribers paid 879 ZAR, the prices converted to $48.22 and $46.34, respectively. The exchange rates for those two years were 18.23 ZAR and 18.97 ZAR.
“The new price for the DStv Premium bouquet in Nigeria is N44,500, which is approximately $29.81 based on an exchange rate of N1492.73 to the dollar.”
Before the new pricing took effect, the cost was N37,000, translating to about $26.55 at an exchange rate of N1393.51/$1. In 2023, the price was N29,500, which amounted to $29.80 at an exchange rate of N990/$1,” noted ADNE.
The organisation also said it discovered that the differences in the cost to subscribers in both countries extend to DStv Compact Plus and Compact bouquets. While Nigerian Compact Plus customers currently pay N30,000 monthly ($20.10 at N1492.73/$1), ADNE stated, South Africans will, from 1 April, pay 659 ZAR ($36.23 at 18.19ZAR/$1). In 2024, according to ADNE, when the ZAR to dollar rate was 18.197ZAR/$1, the price was 579 ZAR, the equivalent of $30.52. It noted that the same year, Nigerian subscribers paid N25,000 ($17.94 at the rate of N1393.51/$1).
ADNE added that in 2023, with an exchange rate of N990/$1, Nigerians paid N19,800, the equivalent of $20. The same year, South African Compact customers were paying 579 ZAR, which amounted to $31.76 at 18.23 ZAR/$1.
The three-year comparison of what DStv Compact subscribers pay in both countries, ADNE noted, follows the pattern of the two other bouquets.
“Currently, Compact costs N19,000 in Nigeria. This amounts to $12.73 at the exchange rate of N1492.73/$1. From next month, South African Compact customers will pay 479 ZAR ($26.33 at 18.77 ZAR/$1). Last year, they paid 449 ZAR ($23.67 at 18.97 ZAR/$1). At the time, those in Nigeria were paying N15,700 ($11.27 at N1393.51/$1).
“When in 2023, Nigerian Compact customers paid N12,500 ($12.63 at N990/$1), the corresponding cost in South Africa was 449 ZAR ($24.63 at 18.23ZAR/$1),” ADNE stated.
While admitting that the economic situation is harsh on Nigerians, it stated that businesses are not faring better, especially with soaring operational costs and foreign exchange instability.
“What is clear is that local currency value, which affects input costs, has a big say in local economic dynamics and pricing. This is what Save the Consumer pretends not to know. Comments credited to the group have the objective of inciting Nigerians against MultiChoice. No responsible organisation should do that, not at a time companies are exiting the country,” said ADNE.
Dissenting voices against rising cost of pay TV
Expectedly, not a few Nigerians believe that the pricing mechanism of DStv is favourable to the local consumers.
One of such dissenting voices is John Oloruntoba who holds the view and very strongly too that Nigerians are the receiving end of what he described as price apartheid by MultiChoice.
According to him, the only sensible deduction one can make from what MultiChoice is doing is that “it is now milking Nigerians to subsidise their compatriots in South Africa.”
“I strongly believe that MultiChoice’s Shylock tendency and predatory antics stem mainly from its monopolistic stranglehold on the cable TV sector in Nigeria. It has wielded this unfair advantage unscrupulously over the years. By craftily securing exclusivity rights over popular sports (soccer) channels with the European brand owners, MultiChoice has succeeded in edging out Nigerian competitors in the industry. It was the strategy it had used to force a promising Nigerian challenger called HiTV into bankruptcy in the 2000s.It is high time Nigerians come together to stop this nonsense by MultiChoice.”
Oloruntoba is not alone. The trio of Azeez Odusote, who runs a consulting firm in Lagos, Maxwell Adeyemi, a financial advisor and Mrs. Toyesi Adebisi, a stay-at-home who also does catering as a side hustle were all unsparing in their criticisms of what they perceive as the mercantile tendencies of the South African-based satellite TV.
According to them, the federal government needs to gird its loins and tighten the noose against shylock companies like MultiChoice literally milking Nigerians dry in a manner of speaking.
As the welter of criticisms rages on, Nigerians wait in bated breath as court hearing begins next May.
