MultiChoice agrees to pay Nigerian govt N35.4 billion as tax settlement

MultiChoice Group, Africa’s largest pay TV company, announced on Thursday that its subsidiaries have reached a settlement with Nigerian tax authorities, agreeing to pay a total tax amount of approximately N35.4 billion ($37.3 million).

The Federal Inland Revenue Service (FIRS) had frozen MultiChoice Nigeria’s accounts in 2022 and issued a tax claim of N1.8 trillion ($1.27 billion) for its Nigerian operations, along with a $342 million claim for value-added taxes.

In a notice to shareholders, the DSTV owner said that MultiChoice Nigeria and MultiChoice Africa Holdings would pay N35.4 billion naira in taxes. It said the amount will be offset against the security deposits and good faith payments made by the subsidiaries to date.

What the company said:

“Shareholders are advised that MultiChoice has reached a settlement with the FIRS in Nigeria in relation to the tax assessments raised in April 2021 on MultiChoice Nigeria (MCN) and in June 2021 on MultiChoice Africa Holdings BV (MAH).

“In terms of the agreement, MCN and MAH shall pay a total tax amount of NGN35.4bn (~US$37.3m), to be offset against the security deposits and good faith payments made to date.”