Tariff Increase: Court Fines MultiChoice ₦150m, Orders Free Subscription for All Nigerians

In a decisive ruling on Friday, the Competition and Consumer Protection Tribunal (CCPT) in Abuja fined MultiChoice Nigeria Limited ₦150 million for defying its directives and violating its jurisdiction.

The tribunal’s unanimous decision, delivered by a three-member panel led by Saratu Shafii, also mandated that MultiChoice provide Nigerian subscribers with a complimentary one-month subscription to its DSTV and GOTV services.

The ruling followed an ex-parte motion filed by attorney Festus Onifade on behalf of MultiChoice subscribers. The tribunal has scheduled a hearing for July 3rd to address the substantive action brought against the company.

On April 29, the panel had ordered MultiChoice Nigeria Limited to halt its plans to increase tariffs and prices for its services, which were set to take effect on May 1. Onifade had argued that the eight-day notice provided by MultiChoice was insufficient and that subscribers should be given at least one month’s notice before any price hike.

Representing the subscribers, attorney Ejiro Awaritoma filed a motion requesting “an order of interim injunction of this honorable tribunal restraining the 1st defendant, whether by themselves, her privies, assigns by whatsoever name called, from going ahead with the impending price increase scheduled to take effect from May 1, 2024, pending the hearing and determination of the motion on notice.” The motion also sought to restrain MultiChoice from taking any steps that could negatively impact the rights of the claimants and other consumers until the tribunal’s final decision.

The tribunal granted these interim orders, effectively preventing MultiChoice from implementing the planned price increase. Despite this, MultiChoice proceeded with the tariff hike, challenging the tribunal’s authority to issue the interim orders.

In response to MultiChoice’s actions, the tribunal, with panelists Thomas Okosun and Dr. Umar Duhu, imposed the ₦150 million fine for contempt of court. The ruling emphasized the importance of adhering to judicial directives and protecting consumer rights.

• Multichoice Nigeria Limited Loses N7.9 Billion in Fraudulent Currency Exchange Deal
• Why consumer rights were poorly enforced in Nigeria _Prof. Nnamani
• Atiku Abubakar Criticizes President Tinubu’s Electricity Tariff Hike
• Nigerian House of Representatives Halts Electricity Tariff Hike Amidst Concerns
• Police reassure on rescue of Zamfara kidnapped varsity students

The case, filed under number CCPT/OP/2/2024, also includes the Federal Competition and Consumer Protection Commission (FCCPC) as a defendant. The tribunal’s decision underscores its commitment to upholding consumer protection laws and ensuring that companies comply with legal standards and fair practices.

As the tribunal prepares for the substantive hearing on July 3rd, the implications of this ruling resonate widely, reinforcing the judiciary’s role in regulating corporate conduct and safeguarding consumer interests in Nigeria.