ABUJA (Reuters) – South African pay-TV company MultiChoice has increased prices for monthly subscriptions in Nigeria by at least 14%, after this month’s settlement with Nigerian authorities following a $4.4 billion tax dispute.
The hike, effective from April 1, 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 naira from 18,400 naira, adding that customers will pay 9,000 naira for value viewing from 7,900 naira.
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.
In June, Nigeria’s Federal Inland Revenue Service (FIRS) froze the company’s accounts and served MultiChoice Group with a 1.8 trillion naira tax claim for its Nigeria operation and a $342 million claim for value-added taxes.
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.
($1 = 415.2500 naira)
(Reporting by Chijioke Ohuocha and Camillus Eboh; Editing by Toby Chopra)
