JUST IN: Court dismisses FCCPC case against MultiChoice, affirms president’s exclusive power over prices

DDM News

A Federal High Court in Abuja has ruled that only the President of Nigeria has the constitutional power to fix or control prices in the country.

This ruling came during the judgment delivered on Thursday in a case involving MultiChoice Nigeria, the parent company of pay-TV services DStv and GOtv, and the Federal Competition and Consumer Protection Commission (FCCPC).

Diaspora Digital Media (DDM) reports that MultiChoice had approached the court to challenge FCCPC’s intervention in its decision to increase subscription fees by up to 25 percent.

The company implemented the price hike on March 1, 2025, citing rising inflation and escalating operational costs as the reasons for its decision.

However, the FCCPC opposed the price hike, requested regulatory review, and threatened sanctions against MultiChoice for proceeding with the increase.

In response, MultiChoice filed a legal action, arguing that FCCPC had exceeded its authority by attempting to reverse or suspend the price adjustment.

Justice James Kolawole Omotoso, who presided over the case, dismissed the suit filed by MultiChoice, declaring it an abuse of court process.

He noted that similar proceedings were already ongoing in another court and that MultiChoice should have pursued its arguments in that court instead of initiating a new suit.

Despite dismissing the suit on procedural grounds, the court used the opportunity to clarify the limits of FCCPC’s legal powers.

Justice Omotoso explained that although the FCCPC has investigative authority under its establishing Act, it cannot fix or suspend prices unless such power is expressly delegated by the President through a gazetted order.

He stated clearly that no such delegation was presented before the court in this instance.

According to the judge, Nigeria operates under a free-market economic system, where service providers are permitted to set prices based on market forces.

He emphasized that consumers have the right to either accept or reject such prices without government interference.

The judge ruled that the FCCPC’s attempt to compel MultiChoice to suspend its price increase violated the company’s right to a fair hearing

He added that the commission’s actions appeared to be selectively targeted against the company.

Justice Omotoso also rejected FCCPC’s argument that MultiChoice holds a dominant position in the market, describing the claim as baseless.

He pointed out that the services offered by MultiChoice are not essential, but discretionary, and that Nigerians can do without them if they choose.

The judge warned that excessive interference by regulatory bodies in pricing matters could damage investor confidence and negatively affect the Nigerian economy.

He stressed that any effort to impose price control without clear legal authority risks undermining both business freedom and consumer choice.

This judgment underscores the importance of due process and legal boundaries in regulatory oversight.

It serves as a reminder that regulatory agencies must operate strictly within the limits of their legal mandates.

Observers say the ruling could set a precedent for how other regulatory bodies engage with private companies in the future.

It also highlights the delicate balance between consumer protection and economic freedom in a liberalized market system.

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