The House of Representatives has directed Multichoice, the operator of DStv and GOtv, to suspend its planned subscription price hike due to the economic difficulties facing Nigerians. The decision came after concerns were raised over the impact of the price adjustments on consumers.
Multichoice recently announced a new pricing structure, set to take effect from March 1. Under the revised rates, DStv Premium would increase from ₦37,000 to ₦44,500, Compact+ from ₦25,000 to ₦30,000, and the Compact bouquet from ₦17,000 to ₦19,000. The adjustments triggered widespread criticism, particularly given the current economic challenges in the country.
The directive to suspend the price increase was issued following a motion raised by Esosa Iyawe, an APC lawmaker from Edo State, during the House plenary on Tuesday. Iyawe argued that this would be the second price hike by Multichoice in less than a year, with the last adjustment taking place in May 2024. He noted that the previous increase led to significant public outcry, with many Nigerians struggling to afford the service and some abandoning their decoders due to the lack of competition in the pay-TV sector.
He further emphasized that Multichoice’s dominant position in the industry meant that any price increase would have a widespread impact, placing additional financial pressure on consumers. Lawmakers expressed concerns that without adequate regulation, the company could continue imposing arbitrary increases that many Nigerians cannot afford.
Following discussions, the House of Representatives resolved that Multichoice must put the price hike on hold until a comprehensive investigation is conducted. Lawmakers stressed the need for transparency and fairness in pricing, particularly in an industry where consumers have limited alternative options.
To address the issue, the House mandated the Committee on Commerce to investigate the frequent price increases by Multichoice and propose measures to regulate pricing in a way that ensures affordability for Nigerian subscribers. The committee has been given four weeks to present its findings and recommendations.
The move by the House reflects growing concerns over the rising cost of living and the need to protect consumers from unjustified price hikes. Many Nigerians have expressed frustration over the recurring increases, calling for more competition and better regulation in the pay-TV industry. The upcoming investigation is expected to provide insights into the pricing structure of Multichoice and possible measures to prevent future arbitrary adjustments.
