The move immediately underscores the shrinking of disposable income among Nigerians due to the punishing economy, the decline of the naira, fuel subsidy removal and soaring inflation rates.
“The Nigerian economy and consumers faced persistent challenges through FY24 (Fiscal year), The removal of fuel subsidies, sharp currency depreciation with the official naira halving in value, inflation climbing to over 30%, and higher emigration of the middle and upper class drove an 18% YoY decline in active subscribers (FY23: +13%),” MultiChoice said.
The company’s Return on Assets (ROA) from Nigeria has since dropped from 44% to 35%. Also, the company said the decline in the ROA subscriber base led to a 9% decline in the group’s total active subscribers.
“The group’s 9% decline in active subscribers was mainly due to a 13% decline in the Rest of Africa business as mass-market customers in countries like Nigeria had to prioritise basic necessities over entertainment, while the South African business showed more resilience with a 5% decline,” the MultiChoice stated.
According to MultiChoice, the reviewed period is the toughest set of macroeconomic conditions for its ROA business since 2016, with high double-digit inflation in many of the group’s core markets leading to immense pressure on customer spending power.
“The official and parallel naira exchange rates reached peaks of ₦1600:1USD and ₦1900:USD respectively in February 2024, with several other African markets also experiencing extreme foreign exchange depreciation,” MultiChoice said.
