Africa’s largest pay-TV company, MultiChoice Group, has reached a settlement with Nigerian tax authorities, agreeing to pay $37.3 million to resolve a dispute that erupted in 2021.
The Nigerian Federal Inland Revenue Service (FIRS) had originally slapped MultiChoice Nigeria with a massive $4.4 billion tax claim, accusing the company of underpaying taxes and denying access to its servers for audits. The dispute led to lawsuits filed by both parties.
Under the terms of the settlement announced Thursday, MultiChoice Nigeria and its parent company, MultiChoice Africa, will jointly pay 35.4 billion naira (roughly $37.3 million) to settle the outstanding tax liabilities. This amount will be offset against previously deposited security and good faith payments.
The agreement brings to an end a two-year saga that had strained relations between MultiChoice and the Nigerian government. In 2022, the FIRS froze MultiChoice Nigeria’s bank accounts, further escalating the tension.
“We are pleased to have reached an amicable resolution of this matter with the FIRS,” said Calvyn McCarthy, Group CEO of MultiChoice. “This agreement allows us to focus on our core business of delivering quality entertainment to our customers in Nigeria and across Africa.”
The FIRS has not yet commented on the settlement.
Background:
- In April 2021, the FIRS issued tax assessments totaling 1.8 trillion naira ($4.4 billion) against MultiChoice Nigeria.
- MultiChoice disputed the assessments and appealed to the Tax Appeal Tribunal, leading to legal battles.
- In August 2022, a Tax Appeal Tribunal court ordered MultiChoice to pay 50% of the assessed amount as a temporary measure.
- Negotiations between MultiChoice and the FIRS resulted in the final settlement of $37.3 million.
