A Federal High Court sitting in Abuja has upheld MultiChoice Nigeria’s right to increase its subscription prices, ruling that the Federal Competition and Consumer Protection Commission (FCCPC) lacks the legal authority to interfere in the company’s pricing decisions.
In a judgment delivered on Wednesday, May 8, 2025, Justice James Kolawole Omotoso struck out a lawsuit filed by MultiChoice challenging the FCCPC’s move to halt its recent tariff adjustment. The court described the suit as an abuse of the judicial process, stating that the company should have pursued its arguments in an existing case rather than initiating a new one.
Despite dismissing the suit, Justice Omotoso delivered a landmark ruling that clearly outlined the limits of FCCPC’s regulatory powers. He emphasised that while the commission has the statutory authority to investigate anti-competitive practices, it does not have the power to fix or suspend prices unless such powers are formally delegated by the President through a gazetted order.
“In this instant case, no such delegation from the President was presented to the court. The power to fix prices is exclusively that of the President,” Justice Omotoso ruled. “Any decision taken without such delegation is a nullity.”
The judge further ruled that Nigeria operates a free market economy and companies such as MultiChoice have the right to determine their service charges, provided they do not breach consumer protection laws. He noted that consumers, in turn, have the discretion to accept or reject such services.
The court also faulted the FCCPC’s order instructing MultiChoice to suspend its new pricing structure, describing it as a violation of the company’s right to fair hearing and suggesting that the commission had acted in a selective manner.
On FCCPC’s claim that MultiChoice enjoys market dominance and should be subject to stricter oversight, the court disagreed. Justice Omotoso held that the use of pay-TV services is not essential and that Nigerians have alternatives.
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“The services provided by the plaintiff are discretionary. Nigeria can do without it,” he stated.
The ruling effectively means that MultiChoice can continue with its revised pricing, which saw subscription fees rise by up to 25% on March 1, 2025. The company had attributed the increase to persistent inflation and soaring operating costs.
The FCCPC had challenged the hike, citing public outcry and a need for regulatory oversight. However, with the court’s latest ruling, the commission has been restrained from issuing or enforcing directives related to price control in the absence of legal backing.
Legal experts believe the verdict could have wider implications for how regulatory bodies operate in Nigeria’s free-market space, particularly concerning investor confidence and regulatory overreach.
The FCCPC is yet to issue an official response as of press time.