Africa’s largest pay-TV company, MultiChoice Group, has successfully resolved a protracted tax dispute with the Nigerian tax authorities. The settlement, reached after rigorous negotiations, involves substantial payments and marks a significant milestone in the company’s commitment to regulatory compliance and responsible corporate citizenship.
In 2022, Nigeria’s Federal Inland Revenue Service (FIRS) took decisive action by freezing MultiChoice Nigeria’s accounts. The FIRS asserted a staggering 1.8 trillion naira ($1.27 billion) tax claim against MultiChoice Nigeria for its operations within the country. Additionally, a $342 million claim was levied for value-added taxes.
MultiChoice Group, in collaboration with its Nigerian subsidiaries, has now reached a settlement of $37.3 million with the tax authorities. This resolution brings an end to the contentious tax assessments raised against MultiChoice Nigeria (MCN) and MultiChoice Africa Holdings BV (MAH). The settlement amount will be offset against security deposits and good faith payments previously made by the companies.
The agreement not only provides clarity on tax liabilities but also paves the way for continued operations and investment in Nigeria’s dynamic entertainment landscape. Dr. Shaibu Husseini, Executive Director of the National Film and Video Censors Board (NFVCB), commended the resolution:
“MultiChoice’s commitment to regulatory obligations and its proactive approach in addressing complex challenges are commendable. By swiftly resolving this dispute, the company demonstrates transparency and compliance in its business dealings. Investors and stakeholders can be reassured of MultiChoice’s robust governance framework and its ability to navigate regulatory complexities effectively.”
