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Broadcasting

Harassment of Multichoice Spells Trouble for Other Investors

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Nigeria is gradually turning from a market darling to a risky land in the eyes of many investors.

Harassment of Multichoice Spells Trouble for Other Investors

Policies somersaults; regulatory instability; large scale distractions from lawmakers as well as opinions of ill-informed experts are conspiring to hobble Nigeria’s fledgling broadcasting industry,

And the National Broadcasting Commission (NBC) has also opened itself to a needless controversy in current bid to regulate the broadcast industry.

Elsewhere, either by ignorance or mischief, the House of Representatives is hounding Multichoice, operators of DStv and GOtv over current pricing model.

The House ad-hoc committee is convinced that the pay-TV operator is ripping Nigerians off with its current pricing model and has resolved to force change by compelling cable service providers to switch to a pay-per-view (PPV) or pay-as-you-go (PAYG) pricing model.

According to weetracker.com, the PPV/PAYG option might prove a bigger problem because pay-TV companies like Multichoice Group expend hundreds of millions of dollars acquiring broadcasting/licensing rights all over the world.

Some companies acquire broadcasting rights for years at a time with upfront payment.

“For instance, Multichoice’s popular DStv sports channel, SuperSport, paid EUR 296 Mn (USD 332.05 Mn, at today’s rates) for the 2016-19 Barclays Premier League broadcast rights in Sub-Saharan Africa.” weetracker.com reported.

After paying so much to acquire these rights, companies like Multichoice recoup this money from subscriptions while targeting profits.

But sometimes the margins are quite narrow.

According to weetracker.com, if Multichoice gets strong-armed into going the PAYG or PPV route in Nigeria, there is hardly a doubt that the company will adjust its pricing to offset the difference and make their money back; such that the PPV/PAYG option might prove even more costly for subscribers after all checks and balances are done.

But even this point is moot as Multichoice has previously made it clear that it is incapable of implementing the PPV model.

Nico Meyer, CEO of MultiChoice Africa, told an entertainment content conference that was held in Mauritius in 2014 that his company has no capacity to put in place such a facility.

“We procure content on a monthly basis, we don’t procure it based on the time the consumer will be using it, but on an entire month,” said Meyer.

The MultiChoice Africa boss added that, unlike mobile operators and electricity companies, they were unable to detect when their subscribers are actually using their service.

“If you buy airtime and you consume it, they will deduct it because they can tell. But we cannot tell when someone is traveling or not using it.

“All I know is that someone pays on a monthly basis and we make that service available but I cannot tell if you are consuming the service,” he said.

By the admission of Armstrong Idachaba, acting director-general, NBC, the agency has on many occasions compared the tariffs in Nigeria with those of other African countries and found out that Nigeria’s rates are much lower in some cases,  including the company’s home country, South Africa, where it actually has a far greater number of subscribers.

As of November 2019, the group’s overall subscriber base stood at 18.9 million households with South Africa single-handedly accounting for 8.2 million of those.

The remaining 49 countries where Multichoice broadcasts, including Nigeria, collectively make up 10.7 million.

Of DSTV’s 13.5 million subscribers in Sub-Saharan, Nigeria accounts for barely 1.5 million.

This should put to bed any talk of Nigeria’s being Multichoice’s largest market, as South Africa actually has nearly 5-times Nigeria’s total DStv subscriptions.

Another misconception that is common among Nigerians is the unfounded idea that the group offers the PPV option in South Africa.

According to weetracker.com, this s is a bogus and untrue claim as Multichoice is not known to offer such anywhere.

Indeed, DStv and GOtv bouquet prices increased significantly recently but this may not be unconnected to the revised taxing regime that came into effect this year.

Earlier this year, Nigeria had implemented a new Value-Added Tax (VAT) regime which was a 50 percent climb from the previous figure.

The move by NBC to upend the existing right of broadcasters to exclusivity of their content indicates a descent to feudalism–a dominant social and economic system in medieval Europe where ownership of land and other factors of production is by privilege of birth and not on the basis of innovation and hard work.

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Broadcasting

MultiChoice vs FCCPC: Only President has Power to Fix Prices- Court

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The Federal High Court sitting in Abuja on Thursday ruled over a dispute between the Federal Competition and Consumer Protection Commission (FCCPC) and MultiChoice Nigeria over the recent hike in subscription fees for DStv and GOtv services, declaring that only the President has the power to fix or suspend prices in Nigeria.

MultiChoice vs FCCPC: Only President has Power to Fix Prices- Court

Justice James Omotosho,  trial Judge,ruled that the suit filed by MultiChoice Nigeria constituted an abuse of court process as similar proceedings were already pending elsewhere, adding that the plaintiff should have pursued its arguments in that court, rendering the current filing procedurally inappropriate.

Justice Omotosho noted that while the FCCPC has investigative powers under its establishing Act, it lacks the authority to fix or suspend prices unless specifically delegated by the President through a gazetted instrument and held that such delegation was not presented to the court.

“The power to fix prices is exclusively that of the President. Any decision taken without such delegation is a nullity,” the Judge held and added that Nigeria operates a free market system and service providers like MultiChoice retain the right to set their prices, with consumers free to accept or reject them.

The Judge further ruled that FCCPC’s actions, including directing MultiChoice to suspend its price increase, breached the company’s right to fair hearing and appeared selectively targeted.

He dismissed the FCCPC’s claim that MultiChoice held a dominant market position, calling the argument untenable.

“The use of services like those provided by the plaintiff is discretionary and not essential. Nigeria can do without it,” he added and warned that attempts to fix prices by regulatory bodies could scare off investors and harm the economy of the country.

The court held that while the FCCPC may investigate market practices, it cannot impose price controls without proper legal backing.

MultiChoice Nigeria, the parent company of DStv and GOtv, announced a price hike on March 1, 2025, citing inflation and rising operational costs. The adjustments saw subscription fees increase by up to 25% across various packages.


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Navigating the Maze: Solutions for Nigeria’s Flourishing Foodtech Industry

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By Diana Tenebe, Chief Operating Officer, Foodstuff Store

Nigeria’s foodtech sector holds immense promise to transform our nation’s food production, distribution, and consumption systems.

However, this burgeoning industry currently navigates a complex maze of challenges that could significantly hinder its progress. While innovation and entrepreneurial drive are abundant, a confluence of infrastructural deficits, economic headwinds, technological disparities, and logistical complexities casts a shadow on the sector’s long-term viability.

Understanding and addressing these multifaceted hurdles is paramount for foodtech companies aspiring to thrive and contribute meaningfully to Nigeria’s food security.

One of the most significant impediments to the foodtech sector’s advancement is Nigeria’s persistent infrastructural weaknesses.

The unreliable power supply, a well-known constraint for businesses nationwide, directly threatens food preservation, increasing spoilage risks and driving up operational costs for companies reliant on refrigeration and consistent processing.

Similarly, the often-deteriorated state of our road networks complicates logistics and transportation, hindering the efficient movement of goods from farms to consumers and across the supply chain.

Furthermore, limited access to clean water exacerbates operational challenges, particularly for maintaining food processing and hygiene standards. Collectively, these infrastructural shortcomings inflate operational expenses and introduce vulnerabilities throughout the food supply chain.

Economic constraints add another layer of intricacy. Fluctuations in currency exchange rates create instability in pricing and procurement, especially for businesses dealing with imported technologies or ingredients. Persistent inflation erodes consumer purchasing power and increases the cost of essential inputs, squeezing profit margins for startups.

Moreover, limited access to credit and investment capital makes it difficult for emerging foodtech companies to secure the necessary funding to invest in crucial technology, infrastructure, and expansion efforts.

This financial constraint can stifle innovation and prevent promising ventures from reaching their full potential.

The digital divide also poses a unique challenge for foodtech companies aiming to leverage online platforms and digital solutions. While mobile phone usage is widespread in Nigeria, disparities in digital literacy and access to reliable internet connectivity can restrict the widespread adoption of online food ordering and delivery services, particularly in rural and underserved communities.

This necessitates creative and inclusive strategies to bridge the digital gap and reach a broader consumer base.

Inefficiencies within the supply chain represent a critical bottleneck in the Nigerian food system. Fragmented agricultural supply chains, characterised by numerous intermediaries and a lack of transparency, contribute to alarmingly high post-harvest losses.

Inadequate storage facilities and inefficient transportation infrastructure further compound these issues, leading to significant waste and price volatility.

Addressing these systemic weaknesses is crucial for ensuring a stable and affordable food supply for all Nigerians.

Navigating Nigeria’s regulatory landscape can also be a daunting task for foodtech businesses. The presence of multiple regulatory agencies, coupled with often bureaucratic and time-consuming processes for obtaining licenses and permits, can create significant hurdles for startups. Clear, consistent, and streamlined processes within the regulatory framework are essential to foster a more enabling environment for innovation and growth.

Building consumer trust and acceptance for new food technologies requires overcoming inherent skepticism and unfamiliarity. Concerns regarding food safety, quality, and the security of online transactions can hinder the adoption of novel food products and digital platforms.

Transparent communication, robust quality control measures, and consistent consumer engagement are vital for building confidence and fostering widespread acceptance.
Finally, a notable talent gap exists within the Nigerian foodtech ecosystem.

A shortage of professionals possessing specialised skills in food science, technology, business management, and logistics can limit the growth and innovation capacity of companies in this sector. Addressing this skills deficit through targeted training and development initiatives is crucial for long-term success.

Despite these significant challenges, promising pathways forward can be forged through innovative and context-specific approaches. Investing in localised infrastructure solutions, such as independent power generation and efficient localised logistics networks, can mitigate the impact of broader infrastructural deficiencies.

Exploring diverse funding avenues beyond traditional banking, including angel investors, government grants, crowdfunding, and revenue-based financing, can alleviate financial constraints.

Adapting to the digital divide by leveraging basic mobile technology and employing offline strategies like local agent networks can expand reach and inclusivity.

Building resilient supply chains through direct farmer relationships, investing in aggregation centres, and utilising technology for farm management offer tangible solutions to logistical inefficiencies.

Proactive engagement with regulatory bodies and advocating for clearer, more supportive policies are crucial for navigating the regulatory landscape effectively. Building consumer trust necessitates transparent sourcing practices, clear communication about product benefits and safety, and active engagement with consumer feedback.

Finally, investing in talent development through collaborations with educational institutions and in-house training programs can bridge the critical skills gap.

Foodstuff Store is emerging as a business with a clear vision to directly confront several of these challenges. We are actively developing a decentralised network of businesses supported by strategically located distribution hubs across target states.

This approach will directly address the limitations imposed by poor road networks, ensuring more localised access to our food products.

Furthermore, the establishment of regional storage facilities, including a state-of-the-art solar-powered cold storage, directly tackles infrastructural deficiencies related to food preservation and ensuring a consistent supply.

Foodstuff Store’s ambition for end-to-end management of the food supply chain, encompassing in-house production, direct sourcing, advanced storage solutions, and efficient distribution, offers a powerful solution to existing supply chain inefficiencies.

This integrated approach promises enhanced quality control, significant reductions in post-harvest losses, and a more reliable supply of both perishable and non-perishable goods for our customers.

Our aspiration to become the “Amazon for Food Products” is a clear and ambitious goal underpinned by a technology-driven approach to all aspects of our operational management.

Foodstuff Store’s vision underscores a business model strategically designed to overcome significant hurdles within the Nigerian foodtech sector, offering a beacon of potential and a pathway to a more secure and efficient food system in a challenging yet remarkably promising landscape.


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History as TVC News Unveils Nigeria’s First AI-Powered News Anchors

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TVC News has broken new ground in Nigeria’s media space with the launch of the country’s first Artificial Intelligence (AI) news presenters.

History as TVC News Unveils Nigeria’s First AI-Powered News Anchors

Rolled out in May 2025, the AI anchors will deliver news bulletins in English, Yoruba, Hausa, Igbo, and Pidgin, reflecting the broadcaster’s commitment to technological advancement and linguistic inclusion.

The initiative is designed to enhance news delivery by supporting human journalists, not replacing them.

TVC Communications, the parent company of TVC News, described the development as a milestone in its efforts to integrate cutting-edge technology into broadcast journalism.

“We are thrilled to pioneer this innovation in Nigeria’s media industry,” said Victoria Ajayi, chief executive officer, TVC Communications.

“Our AI news anchors represent a new era in news reporting, and this move underscores our dedication to using technology as a tool for growth and progress.”

Ajayi clarified that the AI-generated content will undergo thorough editorial review.

“Trained journalists and editors will assess every output to ensure it meets our standards of accuracy, balance, and credibility,” she noted.

In response to concerns about the potential misuse of AI, the organisation said it had established rigorous editorial safeguards, including watermarking and verification protocols. It also reaffirmed its adherence to the Nigerian Broadcasting Code and journalistic ethics.

With this launch, TVC News has become a trailblazer in AI-assisted journalism in Africa, setting a bold example for future media innovation across the continent.


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