A recent ruling by the Federal High Court in Abuja has affirmed Nigeria’s status as a free market economy, dismissing a lawsuit filed by MultiChoice Nigeria against the Federal Competition and Consumer Protection Commission (FCCPC).
Summary of the Ruling
-
Case Dismissal: Justice James Omotosho dismissed MultiChoice’s suit, citing it as an abuse of court process due to similar ongoing proceedings in another court.
-
Price Regulation Authority: The court clarified that the FCCPC lacks the authority to fix or suspend prices unless explicitly delegated by the President through a gazetted instrument. No such delegation was presented in this case.
-
Free Market Affirmation: Justice Omotosho emphasised that Nigeria operates a free market system, allowing service providers like MultiChoice to set their prices, with consumers having the freedom to accept or reject them.
-
FCCPC’s Actions: The court found that the FCCPC’s directive to MultiChoice to suspend its price increase breached the company’s right to a fair hearing and appeared selectively enforced.
-
Market Dominance Claim: The FCCPC’s assertion that MultiChoice held a dominant market position was dismissed as “untenable,” with the judge noting that services like those provided by MultiChoice are discretionary and not essential.
Recall that on March 1, 2025, MultiChoice implemented a subscription price increase of up to 25% for its DStv and GOtv services, citing inflation and rising operational costs.
READ ALSO: MultiChoice Nigeria to Raise DStv and GOtv Subscription Fees Starting March 1
The FCCPC opposed this move, directing the company to maintain its previous pricing structure pending a review. MultiChoice proceeded with the price hike and sought legal redress, leading to the recent court ruling.
This judgment reinforces the principle of a free market economy in Nigeria, limiting regulatory bodies like the FCCPC from unilaterally imposing price controls without proper legal backing.
