Multichoice raises prices in Nigeria for the third time this year

As seen in the Nigerian newspaper, The Punch, "the DStv Premium package increased by 20.4 percent from N24,500 to N29,500. Similarly, the DStv Compact+ has gone up by 19.2 percent from N16,600 to N19,800 while the Compact package increased by 19 percent, from N10,500 to N12,500."

Multichoice complications in Nigeria
As reported a few weeks back, the currency debacle in Nigeria and power issues in South Africa made operating in the country a complex challenge for the broadcasting company.

To elaborate, the issue Multichoice faced in Nigeria was the result of a decision in June to allow the Naira to trade more freely against the dollar, bringing about a 40% deflation.

The company was then forced to reevaluate inter-group loans, resulting in foreign exchange losses. However, Multichoice noted that it enjoyed significant expansion through the addition of 1.4 million new customers in the year under review.

A source close to the story revealed to the Punch that the currency issues in Nigeria spurred other complications including including taxation and logistics, among others that eventually resulted in the loss.

"Yes. We have increased our rates. We buy content in dollars but earn in naira. If we take off a channel or stop acquiring content that our customers are used to, we will be slammed," the source revealed to the Punch.

"We buy diesel. We pay taxes. Even before this year, with the dollar and fuel subsidy removal. We pay billions in licensing fees. We operate several offices. We have to pay staff," the source added.

This hike is the second in less than six months, and the third time this year. The first, on May 1st, and the second on November 6th.