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For Arrogance, Tribunal Fines Multichoice N150m, Orders One-Month Free Service To DSTV, GOTV Subscribers

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By Kayode Sanni-Arewa

The Competition and Consumer Protection Tribunal has fined prominent Pay-TV operator, Multichoice Nigeria, N150 million administrative charges for challenging the jurisdiction of a court sitting in Abuja that recently restrained it from increasing the prices of its DStv and GOtv packages.

The verdict delivered by three of the panel led by Thomas Okosu on Friday also ordered Multichoice to give Nigerians a one-month free subscription on DSTV and GOTV.

The Tribunal had restrained MultiChoice from increasing its subscription rates pending the hearing and determination of a motion on notice filed by Barrister Festus Onifade.

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Onifade, who sued Multi-Choice Nigeria Ltd, and the Federal Competition and Consumer Protection Commission (FCCPC), accused Pay TV of unjustly increasing subscription fees without one-month notice to customers and leveraging it to seek interim orders against Pay TV.

A three-member tribunal chaired by Saratu Shafii had ruled in favour of Onifade by restraining Multichoice in the  interim, in the suit marked CCPT/OP/2/2024, restraining the pay TV from going ahead with the impending price increase scheduled to take effect from 1st May 2024 pending the hearing and determination of the Motion on Notice.

But Multichoice’s lawyer, Moyosore .J. Onibanjo (SAN) filed a preliminary objection, urging the court to decline jurisdiction on the suit filed by Festus Onifade and strike it out because such a price dispute case had been decided before in favour of his client.

Onibanjo also tendered and adopted the previous judgement of the tribunal in suit no CCPT/OP/1/2022(Exhibit A), alongside his application, saying when a court has determined an issue between the same parties on the same subject matter before, that matter cannot be re-litigated again by any tribunal or court.

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He averred that the power to regulate prices was vested in the president of Nigeria, adding that the Tribunal was not the forum where the claimant could come to seek to regulate the prices and services offered by Multichoice.

On his part, Onifade argued that the issue he placed before the court was  whether Multichoice Nigeria gave adequate notice in respect of the May 1, 2024 price TV subscription increase, and not price regulation or increase.

“It is our submission that the 8-day notice issued by Multichoice Nigeria  is insufficient in law. A monthly subscriber should be given at least a month.

“Dismiss this application (by Multichoice )for being a waste of time of the court,” Onifade prayed.

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Onifade also asked the Tribunal to direct Multi-choice Nigeria Limited to pay the sum of N1,000,000,000.00 (One Billion Naira only) or any amount the Tribunal may deem fit or appropriate in this circumstance for “deliberately disobeying, contravening, and failure to comply with the Interim Order of this Honourable Tribunal granted on the 29th April 2024.”

Counsel for the FCCPC, Nikiomari Abeke,  told the CCPT that he was not opposing the application of Multichoice Nigeria but would abide by the direction of the tribunal regarding all the processes before it.

On Friday, the three-man panel chaired by Justice Thomas Okosu held that Section 39(2) of the FCCPC Act states that the tribunal shall have jurisdiction throughout the federation and on all commercial activities aimed at making a profit.

“The jurisdiction of this tribunal extends to all business activities within Nigeria,” Okosu said.

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He said he looked at relevant provisions cited by parties and did not find where an aggrieved consumer who sought to enforce his rights was required to file a complaint to the President of Nigeria or the Price Control Board.

The judge also observed that the claimant wrote letters to the FCCPC before filing his case.

“I have come to the conclusion that this tribunal has the jurisdiction to preside over consumer rights as in the instant case and I resolve this issue against Multichoice,” the judge said.

Besides, the tribunal held that the claimant’s instant suit was not questioning the Multichoice price hike as claimed by Onibanjo but the illegality of his client’s 8-days notice to the customers.

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The Tribunal noted that Multichoice had already disobeyed its interim orders, adding that its action of hiking DSTV and GOTV prices was condemnable and must not be condoned by the Tribunal.

The tribunal dismissed Multichoice’s preliminary objection for disobeying its interim orders.

Subsequently, the Tribunal imposed an administrative penalty on Multichoice for failing to comply with an order of the tribunal

“The first defendant is hereby mandated to pay N150 million penalty.

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“Multichoice is hereby ordered to give Nigerians one month free subscription.”

Recall that Multichoice announced new price adjustments on DStv and GOtv packages on Wednesday, April 24, 2024.

The email message to subscribers read, “On Wednesday, 1 May 2024 we will adjust our prices across all our packages on OStv and GOtv. We understand the impact this change may have on you – our valued customer, but the rise in the cost of business operations, has led us to make this difficult decision. It remains our mission to provide the best entertainment and viewing experience to you and are committed to continue to deliver high-quality content and unparalleled service.”

The development had resulted in a 25% to 26% increase across Multichoice packages.

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But amid the subsisting ruling, the popular Pay TV provider, proceeded with the upward adjustment of its prices for DStv and GOtv subscribers.

On the part of the commission, it said it  would review the reasons identified by Multichoice, noting that the agency could involve regulatory bodies such as the National Broadcasting Commission (NBC).

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Nigerian Online Population Shows Strong Enthusiasm for AI – Report

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A new global survey report from Ipsos and Google has shown widespread use of Artificial Intelligence (AI) tools among Nigerian online population.

The study, tagged: “Our Life with AI: From Innovation to Application,” surveyed 21,000 people across 21 countries, and observed that global AI usage has jumped to 48 per cent and excitement about its potential now exceeds concerns (57 per cent vs. 43 per cent, up from 50 per cent / 50 per cent last year).

According to the report, in Nigeria, AI adoption and enthusiasm are even higher, as 70 per cent of the Nigerian online population used generative AI, surpassing the 48 per cent global average. Moreover, 87 per cent are excited about AI’s potential and see its benefits outweighing the risks.

Analysing the report, President of Global Affairs, Google & Alphabet, Kent Walker, said: “AI is starting to deliver magic at scale, making people’s lives easier and better. The survey results show the more people use these tools, the more excited they get about the possibilities and about the personal, professional, and scientific breakthroughs on the way.”

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The survey results indicate that optimism about AI is growing within the surveyed online community in Nigeria. Key findings from the survey, show that among survey participants in Nigeria, 70 per cent reported using generative AI in the past year, which is significantly higher than the global average of 48 per cent. A substantial 87 per cent of Nigerian respondents feel that AI’s potential benefits outweigh the associated risks, suggesting a strong belief in the positive impact of AI. A significant 81 per cent of surveyed Nigerian adults believe AI will positively change the economy.

Furthermore, 90 per cent of the survey respondents in Nigeria anticipate AI having a positive impact on science and medicine, demonstrating the widespread belief in the potential of AI to drive progress in these sectors.

According to the report, Nigeria’s online population demonstrates a higher level of excitement and adoption of AI when compared to other regions. The survey indicates: Nigeria is among the top countries in terms of AI usage and excitement about its potential.

This contrasts with more cautious sentiment in some European and North American countries.

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The report also said the Nigerian online community saw immense potential for AI in science and medical advancements:

“A significant 90 per cent of survey respondents expect AI to have a positive impact on science and medicine. This is one of the highest rates globally, highlighting the strong anticipation of breakthroughs in these fields through AI,” the report said, and onlinerd that the population in Nigeria recognised AI’s potential to enhance personal and professional development:

“Many believe AI can make people’s lives better by boosting productivity and providing access to resources. Within the Nigerian online population surveyed, there is a prevailing sentiment that supports the fostering of AI advancement rather than restrictive regulations. This suggests that those surveyed are keen to embrace innovation,” the report further said.

The survey results highlight the strong enthusiasm and optimism of the surveyed online population in Nigeria about the role of AI in various aspects of life, particularly in the economy, healthcare, and scientific advancement. The findings suggest that Nigeria’s online community is among the most enthusiastic globally about the transformative potential of AI.

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Google has been pursuing AI boldly and responsibly for years. In 2018, Google was one of the first companies to establish AI Principles grounded in beneficial use and avoidance of harm. Two years ago, it unveiled its opportunity agenda, which shard concrete recommendations for governments to ensure AI benefits the broadest range of people possible.

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President Tinubu Reportedly Backs Creation of New Southwest State

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President Bola Ahmed Tinubu is reportedly backing the creation of a new Ijebu State in Nigeria’s Southwest region.

The proposed state would be carved out of Ogun State, following a long-standing demand by the Ijebu people for recognition as an independent entity, a fresh report has revealed.

Sources revealed that President Tinubu gave his assurances during a meeting with the Awujale of Ijebuland, Oba Sikiru Adetona, at his Bourdillon residence on January 5.

During the meeting, Oba Adetona said that Ijebu is the only former colonial province in Nigeria that has not been granted statehood, unlike other provinces such as Oyo and Sokoto, which have been divided into multiple states. The monarch argued that the Ijebu people have waited long enough for their own state.

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“The president did not hesitate to express his support,” People’s Gazette quoted a source familiar with the meeting as saying.

Oba Adetona had reportedly highlighted the region’s resources and infrastructure, including industrial estates, an international airport under construction, and plans for a deep-sea port, while making case for the state creation.

In December 2024, Oba Adetona, alongside other traditional rulers and leaders from the Ijebu province, held a meeting to discuss logistics for the proposed state. These discussions focused on issues such as the location of the state capital, the creation of local government areas, and the allocation of federal resources.

The monarch expressed confidence in the region’s ability to thrive as an independent state, stating that it is well-positioned for growth and development. “Ijebu province is economically viable and already has all the infrastructural facilities needed to sustain a state,” he had said.

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Before that, in November 2024, Senator Gbenga Daniel, representing Ogun East, introduced a bill titled the “Constitution of the Federal Republic of Nigeria (Sixth Alteration) Bill, 2024 (Creation of Ijebu State) to the National Assembly. The bill seeks to amend the 1999 Constitution to allow for the creation of the new state.

With bills for the creation of other states in other regions of the country, it passed various legislature stages.

Critics argue that the move for the creation of Ijebu State is ill-timed, given the country’s pressing economic issues, including poverty, inflation, and insecurity.

Some political analysts have speculated that President Tinubu’s alleged support for state creation could be politically motivated, as new states might be more inclined to back him for a second term.

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Meanwhile, the presidency has reportedly avoided issuing an official statement on the matter, possibly to prevent sparking controversy among supporters of other state creation initiatives across the country.

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FAAC: FG, States, LGs share N1.424 trillion December 2024 Revenue

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The federation account allocation committee (FAAC) says it shared N1.42 trillion among the three tiers of government in December 2024, noting that Nigeria’s gross statutory revenue declined by 32 percent.

The allocation, which was from a gross total of N2.310 trillion, represents an increase of N300 billion compared to the N1.72 trillion distributed in November.

In a statement on Friday, the ministry of finance said the FAAC announced the disbursements at its December meeting in Abuja, chaired by Wale Edun, minister of finance.

The committee said from distributable amount inclusive of gross statutory revenue, value added tax (VAT), electronic money transfer levy (EMTL), and exchange difference (ED), the federal government received N451 billion, the states received N498 billion, local governments got N361 billion, while the oil producing states received N113.477 billion as derivation, (13 percent of mineral revenue).

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FAAC added that the sum of N84.7 billion was given for the cost of collection, while N801 billion was allocated for transfers, intervention and refunds.

The communique also said the gross revenue available from the VAT for the month of December 2024, was N649.5 billion as against N628.9 billion distributed in the preceding month, resulting in an increase of N20.5 billion.

“From that amount, the sum of N25.982 billion was allocated for the cost of collection and the sum of N18.707 billion given for Transfers, Intervention and Refunds,” FAAC said.

“The remaining sum of N649.561 billion was distributed to the three tiers of government, of which the Federal Government got N90.731 billion, the States received N302.436 billion and Local Government Councils got N211.705 billion.”

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The committee said gross statutory revenue of N1.22 billion received in December was lower than the N1.82 billion received in the previous month by N6.98 million or 32.9 percent.

“From the stated amount, the sum of N57.498 billion was allocated for the cost of collection and a total sum of N782.468 for Transfers, Intervention and Refunds,” the committee added.

“The remaining balance of N386.124 billion was distributed as follows to the three tiers of government: Federal Government got the sum of N167.690 billion, States received N85.055 billion, the sum of N65.574 billion was allocated to LGCs and N67.806 billion was given to Derivation Revenue (13% Mineral producing States).”

Also, N31.2 billion from EMTL was distributed to the federal government (N4.6 billion), states (N15.6 billio), and local governments (N10.9 billion), while N1.3 billion was allocated for the cost of collection.

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In addition, the communique said N402.7 billion from exchange difference was shared with the federal government (N188 billion), states (N95.4 billion), and local governments (N73.5 billion).

The committee said N45.6 billion was given as 13 percent derivation funds.

FAAC said VAT and EMTL increased significantly, while oil and gas royalty, CET levies, excise duty, import duty, petroleum profit tax (PPT) and companies income tax (CIT) decreased considerably.

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