Nigeria is witnessing its worst cost-of-living crisis in a generation, no doubt. President Bola Tinubu admitted that much during his first Presidential Media Chat on December 23, 2024. Yet, when asked if his government will consider travelling the “price control” route in order to mitigate the crunch, his answer was emphatic. “I don’t believe in price control. We just continue to supply the market, we work hard to supply the market,” he said flatly.

Surprisingly, barely two months thence, a government agency – Federal Competition and Consumer Protection Commission, FCCPC – is insisting on price control. Granted, it has the mandate to protect consumers, but it is not a price regulator and Nigeria is a free market economy, the very point Tinubu made with his pointed response.

Citing unabating inclement economic climate, MultiChoice, Africa’s leading pay-tv powerhouse, on February 24, announced its intention to adjust tariffs on its DStv and GOtv packages effective March 1. The tariff hike, according to John Ugbe, the CEO, meant that the DStv premium package, which hitherto cost N37,000 monthly will now dig a deeper hole in the pockets of customers at N44,500. Subscribers on the Compact+ are to pay N30,000 as against N25,000 and Compact bouquet will climb from N15,700 to N19,000.

Reiterating that the hike has been necessitated by the ever-increasing cost of running business in Nigeria, the pay-tv service provider boss said it will enable the firm to continue offering its customers “world-class homegrown and international content, delivered through the best technology.” Significantly, the increments are below 25 per cent, far less than the inflationary pressures exacerbated by sundry volatilities in the economy. Yet, it is enough to put the company in FCCPC’s crosshairs.

To be sure, Nigerians, facing significant economic challenges, are barely surviving and any hike in tariffs makes it worse. But businesses are not faring any better. Firms that hitherto posted robust balance sheets year-on-year are going bust, literally. For instance, in 2024, Nestle Nigeria posted a net loss of N164.6 billion and MTN Nigeria announced a whopping N550.33 billion loss before tax. Those who could not stand the heat in the kitchen fled. In 2023 alone, industry giants, including GSK, Sanofi-Aventis Nigeria Ltd, Unilever Nigeria Plc., Procter & Gamble Nigeria, and Bolt Food, exited Nigeria.

The rising operational costs is a consequence of the much-vaunted reform policies of the Tinubu administration, particularly the removal of fuel subsidy and floating of the Naira. Today, petrol which hitherto sold at N185 a litre, now sells at over N1,000 in most parts of the country. When that is added to the over 250 per cent hike in the cost of electricity from N68 kilowatts per hour to N206.80/kWh for those in the so-called Band A, and the sheer bedlam in the foreign exchange market, the impact on businesses is ruinous.

Standing between the devil and the deep blue sea, businesses that have decided to weather the storm rather than fleeing are hiking their tariffs to remain afloat. MultiChoice is one of them. But it is not the only one. In January, the Nigerian Communications Commission, NCC, approved a 50 per cent tariff increase for telecommunications operators in Nigeria in order to address rising operational costs and ensure sustainability.

Long before the telecoms operators hitched a ride on the price hike wagon, many other companies were already on board with price adjustments in excess of 100 per cent. For instance, early 2024, Nigerian Breweries, NB, Plc. upwardly reviewed prices of 45 products due to “rising input costs and the need to mitigate the impact.” Streaming giants, Netflix, also announced a review of its prices with effect from April 1, 2024. Earlier, International Breweries, bottlers of Hero and Trophy lager brands, citing escalating cost of doing business, increased prices across its product portfolio. Another brewing giant, Guinness Nigeria Plc., also announced a new price regime.

In 2023, cab service providers, Uber and Bolt, made significant adjustment in prices in response to the fuel subsidy removal. Airlines have since then tripled their fares. Healthcare is similarly impacted, with prices of medications shooting through the roof. School fees at all levels, including those of Federal Government-owned universities, went up.

Ironically, these other organisations are given free pass even with higher percentage hikes, but whenever MultiChoice decides to travel the same route, it is singled out for sanction. So, with its less than 25 per cent tariff hike, the gloves are off once again. Last week, Ondaje Ijagwu, FCCPC Director of Corporate Affairs, said the Commission had directed MultiChoice’s CEO to attend an investigative hearing on February 27. “This action follows MultiChoice’s formal notification of the price adjustment, which raises concerns about recurrent unilateral price hikes, potential market dominance abuse, and perceived anti-competitive practices in the pay-tv industry,” the statement read in part. The meeting was later rescheduled for March 6, at MultiChoice’s behest.

The House of Representatives has joined the fray. Following a motion by Esosa Iyawe on Tuesday, the Green Chamber resolved that the pay-tv provider should suspend the proposed hike pending a thorough investigation. If the Senate was not embroiled in the scandalous “roforofo” fight between Senator Natasha Akpoti-Uduaghan and Senate President Godswill Akpabio, it would have embarked on its own inquisition by now.



https://www.vanguardngr.com/2025/03/fccpc-should-let-multichoice-be-by-ikechukwu-amaechi/