Dear Editor,
Good morning, I hope this letter finds you well!
I am a Nigerian and a subscriber of GOTV cable service provider for more than six years now. In April, I read in the news that, GOTV was about hiking its subscription fees from May 1st.
In what appears to be a swift intervention from government, the competition and consumer protection tribunal (CCPT) in Abuja ruled that the firm should not increase its prices as scheduled for May 1.
Despite the court ruling, I discovered this morning that the Pay TV service provider has proceeded with the tariff increase as earlier proposed.
For instance, GOTV Jollie that I used to subscribe to at the rate of 4k is now 4,850 naira. A development I find disrespectful to Nigerian Consumers and our judicial system.
Please, I want you to use your platform to help me and other Consumers who are in the same league with me find out the reason for disobeying the court order.
Kind regards.
Anonymous.
While delibrating on the above letter by members of Consumers Assembly, a parliamentarian said, “I think, this marks the third increment since last year, following the initial adjustment implemented on May 1, 2023. And for me, what they are doing is simply because they are a dominant player in this market. People have no choice but to go to them for cable television, so that’s why they are doing what they are doing.”
On his part, a parliamentarian, John Salau that, “The question here is; will tat judgment pay for GOTV operations where there is no power and cost of running gen move from N800 to N1400. PayTV is optional & subscribers can disconnect whenever they are displeased with their service. How do you respond to a govt tat increases prices of good&services from govt; but insist private businesses can’t increase their price? A paint of Garri is now averaging N3000, why are we not calling out Garri sellers?”
Another parliamentarian, Amechi Obiakpu observed that, “The question is not wether we have a judiciary, because we do- thing is do we have an effective lqw enforcement? The judiciary has done it’s bit it is for the police to enforce the law- make we hold the police on this.”
Continuing, he said, “aside this. Let us ask ourselves why the incessant increament by gotv/Dstv- as unfortunate as it is.
1. Difficult business environment.
2. High cost of power generation- electricity and diesel.
3. Heavy taxation.
4. Remember also that they pay for their content to the providers.
We have an option- to remain with them or look the way if competition.. like what I am considering- unfortunately!”
Chris Agabi, a parliamentarian, argued that, “In addition, we run ab inperfect market and the government doesn’t regulate prices of goods and services. Prices are still largely demand and supply driven. Sometimes at the whims of the provider. Given that the government doesn’t regulate prices, it will be difficult to single out a product and enforce price control.
Only competition can moderate prices in the Pay TV industry, or so I think.”
In all, it was agreed that, it was largely agreed by parliamentarians that, since we are operating an imperfect market in Nigeria, government cannot regulate the prices of goods services. Rather, prices of goods and services are been determined by the forces of demand and supply.
