MultiChoice Nigeria, facing a cascade of financial and regulatory challenges, has been hit with a crippling ₦766,242,500 (≈$501,000) fine by the Nigeria Data Protection Commission (NDPC) for severe violations of the Nigeria Data Protection Act (NDPA).
Privacy Violation Deepens Crisis
The NDPC revealed an investigation—initiated in Q2 2024—found MultiChoice was illegally processing subscribers’ personal data and transferring it across borders without consent. Data extended beyond subscribers to their associates, in breach of Section 37 of the Nigerian Constitution.
Despite earlier directives to remediate, MultiChoice’s insufficient response led to this substantial penalty.
Tough Times Continue for MultiChoice
This fine arrives amid a period of rapid subscriber decline and mounting financial woes:
- Over the past two fiscal years, MultiChoice Group lost approximately 8 million linear subscribers, severely impacting revenue.
- In just six months (April–September 2024), Nigeria alone lost 243,000 DStv and GOtv subscribers, citing the country’s inflation and inflationary pressures.
- For FY 2025, MultiChoice’s Rest of Africa subscription revenue plunged, contributing to a 9% decline in group revenue, down to US$87 billion, with trading profit slashed by 34%.
- Nigeria’s impact was further compounded by foreign exchange losses (~$158 million) due to the naira’s sharp depreciation.
Regulatory Headwinds Keep Growing
MultiChoice is simultaneously contending with multiple regulatory frontlines:
- Data Protection: The NDPC is also mandating a full compliance audit across all platforms and warning of further penalties.
- Competition Authority: The Federal Competition and Consumer Protection Commission (FCCPC) sued the company over a controversial price hike on DStv and GOtv, citing consumer protection concerns.
- Tax Scrutiny: Earlier this year, MultiChoice settled a tax dispute by paying approximately US$3 million to the Federal Inland Revenue Service in 2024.
Why This Matters
This fresh penalty deepens MultiChoice Nigeria’s existential challenges. Already squeezed by subscriber losses, FX turmoil, and low consumer spending, the added financial burden and reputational damage from privacy violations may hinder recovery efforts.
Shareholder confidence could erode further, and management will likely need to accelerate cost-cutting, and invest heavily in compliance and data governance.
Next Steps for MultiChoice
To navigate this crisis, the company must:
- Swiftly comply with NDPC’s full audit and close data pipeline loopholes.
- Restore consumer trust through transparent data handling and improved communication.
- Adjust pricing or bundle offerings to counter the FCCPC’s and consumers’ concerns amid economic hardship.
- Stabilize financials via more aggressive cost management and exploring growth in digital and streaming segments.
This fine compounds an already perilous operational landscape for MultiChoice Nigeria, now a story of regulatory pressures, consumer attrition, and financial distress converging. Its ability to respond effectively may determine whether it emerges reformed or further weakened.
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