Court Rules Presidential Authority In Price Setting: Multi-Choice Prevails Against FCCPC
In a significant ruling on Thursday, the Federal High Court in Abuja addressed a legal dispute between the Federal Competition and Consumer Protection Commission (FCCPC) and MultiChoice Nigeria regarding the recent increase in subscription fees for DStv and GOtv services. The court determined that only the President of Nigeria possesses the authority to set or suspend prices across the nation.
Presiding Judge, Justice James Omotosho, declared that MultiChoice Nigeria’s suit constituted an abuse of court processes, as similar proceedings were already underway in another court. He emphasized that the company should have pursued its grievances within that existing case, rendering their recent filing procedurally improper.
Justice Omotosho pointed out that while the FCCPC has investigative powers outlined in its founding Act, it lacks the specific authority to fix or suspend prices unless granted explicit permission by the President through a formal gazetted instrument. The court found no such delegation presented during these proceedings.
“The authority to fix prices is exclusively vested in the President. Any action taken without such delegation is ineffective,” the Judge stated. He further highlighted Nigeria’s free market system, affirming that service providers like MultiChoice have the right to establish their pricing, leaving consumers free to accept or decline those rates.
Moreover, Justice Omotosho ruled that the FCCPC’s directive to MultiChoice to suspend the price increase violated the company’s right to a fair hearing and appeared selectively targeted. He dismissed the FCCPC’s assertion regarding MultiChoice’s dominant market position as unfounded.
“The services offered by the plaintiff are discretionary rather than essential. Nigeria can function without them,” he noted, cautioning that regulatory attempts to impose price controls could deter investors and negatively impact the national economy.
The court concluded that while the FCCPC may investigate market practices, it cannot enforce price controls without the requisite legal authorization.
The dispute arose after MultiChoice Nigeria announced a price increase on March 1, 2025, citing inflationary pressures and escalating operational costs. This adjustment resulted in subscription fees rising by as much as 25% across various service packages.
