*The Senate has asked MultiChoice Nigeria to reduce prices of the company’s Pay-TV packages in line with the prevailing economic realities, alleging that the firm ‘willfully and perpetually increases the cost of its bundles

*Asks Federal Ministry of Communications and Digital Economy and Nigerian Communications Commission to direct all Pay-TV providers to introduce a pay-per-view model of subscription as against the current month-to-month prepaid model

Isola Moses | ConsumerConnect

The Nigerian Senate has directed MultiChoice, owners of DStv and GOtv, to reduce the prices of the company’s packages in view of the prevailing economic realities in the West African country.

ConsumerCoonnect reports the the resolution of the Upper Legislative Chamber of the National Assembly (NASS), Abuja, FCT, was sequel to a motion Senator Abba Moro, representing Benue South Wednesday, March 30, 2022.

It is recalled that MultiChoice recently informed Nigerian consumers that it would jact up prices of subscriptions of the company’s packages by 14 percent, a development that was not well received in the economy.

Earlir, Senate President Ahmad Lawan had constituted a seven-man ad-hoc committee to investigate MultiChoice the tariff hikes in Nigeria.

This was even as the Senate directed all pay-tv service providers to immediately review their bouquet prices downwards in tandem with the prevailing reality of the economic situation in Nigeria.

Dr. Ezrel Tabiowo, Special Assistant (Press) to Senate President Lawan in a statement issued Wednesday, March 30 noted Lawan, while announcing the composition of the ad-hoc committee, tasked the panel to carry out a comprehensive investigation into how other countries are billed by Pay-TV service providers.

Lawan then, appointed Senator Aliyu Sabi Abdullahi (Niger North), Deputy Whip of the Senate, to Chair the ad-hoc committee.

Other members of the committee include Senators Sulaiman Abdu Kwari, Oluremi Tinubu, Yusuf A. Yusuf, Lekan Mustapha, Chukwuka Utazi, Akon Eyakenyi.

The Senate earlier in a motion had kicked against the increase in tariffs by MultiChoice Nigeria.

The motion titled, “Nigerians Dumbfounded, Outraged Over Pay-Tv Tariff Hikes, Demand For Pay-Per-View Subscription Model”, was sponsored by Senator Patrick Abba Moro (Benue South).

Senator said with concern that the uproar among consumers over tariff hikes, price increases by Pay-TV service providers on their bouquets in the country.

According to the Federal lawmaker, the leading pay-tv service provider in Nigeria, (MultiChoice Nigeria) had informed all DStv Compact subscribers August, 22 2020, to expect a 13.3 percent price increase to N7,900 up from N6,975 with effect from  September 1, 2020.

Moro bemoaned the hike in subscription fee for DStv compact plus by 9.8 percent from N10,925 to N12,000, and DStv premium from N16,200 to N18,400 indicating a 13.6% hike.

Moro stated: “MultiChoice Nigeria willfully and perpetually increases the cost of its bundles because there is no regulation whatsoever in the area of fixing rates.

“Notes further that as usual, without recourse to the economic situation of the country MultiChoice has again raised the cost of its DStv and GOtv bundles, stating them as follows, DStv Premium (#21,000), Compact (#14,250), Compact (#9, 000), Confam (#5, 300), Yanga (#2, 950), Padi (#2, 150), Business(#2, 669), Xtraview PVR access fee (2, 900).

“Those of GOtv are as follows; GOtv Max (4,150), GOtv Jolli (#2, 6669), GOtv Jinja (#1, 900), GOtv Lite (#900).”

The legislator expressed concern that thousands of Pay-TV subscribers in Nigeria have bitterly reacted to the development on different social media platforms, ranging from deep shock to pure outrage, while many are asking the Nigerian Government to checkmate the activities of Pay-TV service providers in Nigeria, especially in the area of fixing prices.

Senate’s resolution

In its resolutions, therefore, the Nigerian Senate Wednesday urged the Federal Ministry of Communications and Digital Economy and the Nigerian Communications Commission (NCC) to direct all Pay-TV providers to introduce a pay-per-view model of subscription as against the month-to-month prepaid model presently in place.

The Upper Chamber of the Federal Legislature as well directed all Pay-TV service providers in Nigeria to immediately review their bouquet prices downwards in line with the prevailing reality of the economic situation in the country.

The legislators further resolved to set up an Adhoc committee begin a full-scale investigation into the pricing activities of DStv (MultiChoice Nigeria) in order to bring it in line with international practice.