In a significant development, the House of Representatives has directed the Committee on Commerce to investigate the continuous hikes in subscription fees by MultiChoice, the parent company of DStv and GOtv. The directive came after a motion was presented by Esosa Iyawe, a member of the All Progressives Congress (APC) from Edo State, during Tuesday’s plenary session.
In response to the motion, the House also ordered the pay-TV giant to suspend its planned subscription rate increase, which was set to take effect on March 1.
Lawmakers raised concerns about the prevailing economic difficulties in the country and urged MultiChoice to reconsider its decision.
The subscription fee hike, which MultiChoice had recently announced, includes an increase in the DStv Premium package from N37,000 to N44,500, a rise of N7,500. The Compact+ bouquet would also see an increase, from N25,000 to N30,000, while the Compact package would climb from N17,000 to N19,000.
Esosa Iyawe, the APC lawmaker from Edo State, pointed out that “MultiChoice recently announced a hike in subscription rates across all its packages, citing rising operational costs. However, this marks the second increase in less than a year, with the last adjustment made in May 2024.”
Iyawe’s statement highlights the ongoing trend of price hikes, which have sparked dissatisfaction among consumers. The last increase in May 2024 had already triggered public outcry, with many Nigerians struggling to make ends meet. As a result, a significant number of subscribers abandoned their decoders, citing the lack of competition in the pay-TV market and the unbearable financial strain caused by the price hikes.
The lawmaker further emphasized the dominance of MultiChoice in the Nigerian market, stressing that “MultiChoice’s dominance in the market means any price increase has a widespread impact, putting consumers under undue financial pressure.”
Following the motion’s adoption, the House of Representatives resolved that MultiChoice should suspend the proposed hike until a thorough investigation could be conducted. This move aims to address the concerns of Nigerian consumers, who have been burdened by continuous price hikes in a market with limited competition.
The outcome of this investigation could set a precedent for regulating subscription fee increases and ensuring that the interests of consumers are adequately protected in the pay-TV sector.
