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South African pay-television operator MultiChoice has increased prices for monthly subscriptions in Nigeria by at least 14%, after this month’s settlement with Nigerian authorities following a US$4.4-billion tax dispute.
The hike, effective from 1 April, was due to the rising cost of business operations and inflationary pressures, the local unit of the South African group said in a message to subscribers.
It said monthly subscription for premium viewing will rise to ₦21 000 (R747) from ₦18 400, adding that customers will pay ₦9 000 for value viewing, from ₦7 900 before.
Nigeria, with one of the lowest tax collection rates in the world, has been seeking to boost non-oil tax receipts to support its fragile economy and cut its budget deficit. But it faces double-digit inflation and low revenues which has hampered the government’s ability to stimulate its economy.
Read: MultiChoice shares jump on Nigeria tax resolution
In June, Nigeria’s Federal Inland Revenue Service froze the company’s accounts and served MultiChoice Group with a ₦1.8-trillion tax claim for its Nigeria operation and a US$342-million claim for VAT.
MultiChoice, spun off in 2019 from Naspers, makes a third of its revenues elsewhere on the continent, with Nigeria its biggest market outside its home market. — Chijioke Ohuocha and Camillus Eboh, (c) 2022 Reuters
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