Abuja, Nigeria – A Federal High Court in Abuja has denied MultiChoice Nigeria Ltd’s application for an interim order to prevent the National Broadcasting Commission (NBC) from auditing its financial and tax records. The decision was announced on Friday, though the ruling was issued earlier in the week.
Justice James Omotosho, who presided over the case, instructed all parties involved to refrain from any actions that could compromise the integrity of the ongoing legal proceedings. “The ex-parte order for interim injunction dated May 8, 2024, and filed on May 16, 2024, is hereby refused,” he stated.
The case has been adjourned to May 30 for a hearing on the motion on notice.
The dispute involves MultiChoice Nigeria Limited, operators of DStv, and Details Nigeria Limited, providers of GOtv, who challenged the NBC’s demand for additional financial documentation beyond their annual audited accounts.
The companies’ legal representative, Moyosore Onigbanjo, SAN, argued that MultiChoice has consistently met its obligations under the NBC Code, which stipulates a 2.5% annual levy based on income, a figure previously set at 1.5% before 2019. Despite compliance, NBC’s recent requests have prompted the companies to seek judicial intervention.
The companies allege that the NBC’s undefined term “income” led to disagreements over whether it should be calculated as total revenue or revenue minus production costs. An agreement reached in 2014 allowed for the latter calculation method. Consequently, MultiChoice claims it paid over N12 billion in levies from 2014 to date, significantly exceeding the standard 1.5% requirement of the previous NBC Code.
The affidavit from Gozie Onumonu, Head of Compliance for MultiChoice, highlights that the companies have never defaulted on payments and accuses the NBC of abuse of power for its recent actions. He emphasized the disproportionate financial burden placed on MultiChoice and sought the court’s protection to prevent further demands from the NBC.
As the legal battle continues, MultiChoice and Details Nigeria Limited maintain their position against the NBC’s audit demands, awaiting further court proceedings to resolve the issue.
