The House of Representatives has instructed Multichoice, the operator of DStv and GOtv, to suspend its planned subscription rate increase due to the ongoing economic challenges faced by Nigerians.
Details of the Price Increase
Multichoice had announced a price hike set to take effect from March 1, 2025. The DStv Premium package was set to increase from N37,000 to N44,500, while the Compact+ subscription would rise from N25,000 to N30,000. Additionally, the Compact bouquet was to increase from N17,000 to N19,000.
Motion to Suspend the Hike
The motion to halt the increase was introduced by Esosa Iyawe, an All Progressives Congress (APC) lawmaker from Edo State, during plenary on Tuesday. Iyawe argued that while Multichoice cited rising operational costs as the reason for the price adjustment, the timing was problematic for Nigerians already facing economic hardship.
“This marks the second price increase in less than a year, with the last adjustment made in May 2024,” Iyawe said, noting that the previous hike had already led to widespread public outrage, forcing many Nigerians to abandon their decoders due to the lack of competition in the pay-TV sector.
Concerns About Multichoice's Market Dominance
Iyawe emphasized that Multichoice’s dominance in the Nigerian market meant that any price increase would have a widespread impact, placing undue financial pressure on consumers. He urged the government to take action to protect the interests of Nigerian consumers.
House’s Resolution
After adopting the motion, the House resolved that Multichoice should suspend the price hike until further investigations are conducted. The Committee on Commerce has been tasked with probing the recurring price increases and investigating the impact on consumers. The committee has been given four weeks to submit its findings.
Ongoing Efforts to Protect Consumers
This directive reflects the House of Representatives’ commitment to ensuring that Nigerian consumers are not unfairly burdened by unjustified price hikes from monopolistic companies. The investigation will likely explore whether the price increases are truly linked to operational costs or if they reflect unreasonable profiteering.
