MultiChoice’s Nigerian Subscribers Drop 18% Amid Economic Crisis

MultiChoice reported an 18% drop in Nigerian subscribers due to the punishing economy. Shrinking disposable incomes, the naira decline, fuel subsidy removal, and soaring inflation have significantly impacted consumers.

In FY24, Nigerian consumers struggled with the removal of fuel subsidies, sharp currency depreciation with the naira halving in value, and inflation exceeding 30%. These factors, combined with increased emigration of the middle and upper class, resulted in an 18% YoY decline in active subscribers (FY23: +13%).
MultiChoice’s Return on Assets (ROA) from Nigeria fell from 44% to 35%. This decline in the ROA subscriber base led to a 9% decrease in the group’s total active subscribers.

MultiChoice noted that the reviewed period was marked by the toughest macroeconomic conditions for its ROA business since 2016, with high double-digit inflation in core markets significantly pressuring customer spending power.

In February 2024, the naira exchange rates reached ₦1600:1USD and ₦1900:1USD in the official and parallel markets, respectively. Several other African markets also faced extreme foreign exchange depreciation.