The House of Representatives has directed Multichoice, the operator of DStv and GOtv, to suspend its planned subscription rate increase, citing the prevailing economic hardship in the country.
This directive follows a motion moved by Esosa Iyawe, an All Progressives Congress lawmaker from Edo State, during plenary on Tuesday.
Multichoice had recently announced a price adjustment effective from March 1, with the DStv Premium package rising from N37,000 to N44,500, while Compact+ subscribers would pay N30,000 instead of N25,000. The Compact bouquet would also increase from N17,000 to N19,000.
Iyawe noted that the previous hike triggered widespread public outrage, with many Nigerians, already grappling with economic challenges, abandoning their decoders due to a lack of competition in the pay-TV sector. He emphasized that Multichoice’s dominance in the market means any price increase has a widespread impact, putting consumers under undue financial pressure.
Following the adoption of the motion, the House resolved that Multichoice should suspend the proposed hike pending a thorough investigation. The lawmakers also mandated the Committee on Commerce to probe the recurring increases in subscription fees, to ensure cost-effective policies for Nigerian consumers. The committee was given four weeks to submit its findings.
This directive is a significant move by the House of Representatives to protect Nigerian consumers from exploitation. The suspension of the price hike will provide relief to millions of Nigerians who rely on DStv and GOtv for entertainment and information.
Multichoice has yet to officially react to the directive. However, the company had previously stated that the price increase was necessary to offset rising operational costs.
The directive by the House of Representatives to suspend the subscription hike is a welcome move that prioritizes the interests of Nigerian consumers. As the Committee on Commerce investigates the recurring price increases, it is essential for Multichoice to engage with stakeholders and explore cost-effective solutions that benefit both the company and its customers.