Brands/Products
MultiChoice Wins Suit Against NBC’s 2.5% Annual Gross Income Demand
By Adedapo Adesanya
African broadcasting giant, MultiChoice, has won a suit against the National Broadcasting Commission (NBC), which requires broadcasters to pay 2.5 per cent of their Gross Annual Income as an Annual Operating Levy to the Nigerian government.
Justice James Omotosho of the Federal High Court Abuja struck down Section 2 (10) (b) of the National Broadcasting Code, 6th Edition, which was challenged by MultiChoice.
This judgement followed a suit filed by MultiChoice Nigeria Ltd and Details Nigeria Limited (GOtv) against NBC.
Delivering the judgment on Wednesday, Justice Omotosho ordered that the provision be struck down and replaced with Net Annual Income instead of the existing Gross Annual Income.
This means that the 2.5 per cent levy will be taken out of the total amount of revenue after the companies have deducted all operational expenses, taxes, and obligations against Gross Annual Income, which is the total earnings before deductions.
The court also barred the NBC from demanding the plaintiffs’ VAT remittance, FIRS reports, bank statements, audit adjustment journals, trial balances, and general ledgers for the purpose of computing the plaintiffs’ annual income, other than the annual audited accounts of the companies as stipulated in the NBC Code.
The judge stated that NBC can only access other financial documents of MultiChoice through sister agencies such as the Federal Inland Revenue Service (FIRS).
In the suit, the plaintiff’s counsel, Mr Moyosore Onigbanjo (SAN), sought several reliefs, including a determination of whether the NBC had the authority to demand any financial documents other than the annual audited accounts.
He also sought clarification on whether the term “gross annual income,” as used in the NBC Code, was fair and equitable.
“Income, as provided by the NBC Code 6th Edition, is not defined, nor is it defined in any previous editions or in the NBC Act of 2004,” the counsel submitted in court.
Mr Onigbanjo also asked the court to determine whether the waiver or agreement between the plaintiffs and the NBC to pay a flat rate of N800,000,000 (Eight Hundred Million Naira) as an Annual Operating Levy for the years 2020–2023, including certain previous years, was binding on both parties.
Counsel to the NBC, Mr Victor Ogude (SAN), argued before the court that the agreement was not binding on the NBC, as the NBC’s acting Director-General who agreed on its behalf acted beyond his powers.
He contended that the NBC was entitled to the full amount payable.
Mr Ogude also urged the court to uphold the NBC’s oversight role over MultiChoice and Details Nigeria.
Delivering his verdict on Wednesday, Justice Omotosho, said with his experience as a trained economics teacher, running a business like the one operated by the plaintiffs requires significant capital and expenses. It is only fair, he said, that these expenses be deducted before the Annual Operating Levy is paid.
He stated that net income is the actual profit after subtracting all business expenses, adding that the taxable amount cannot be determined when calculating gross profit but should be based on net profit.
The judge emphasized that the Annual Operating Levy charged by NBC is a form of tax imposed on broadcasters.
He then held that it would be unjust to impose it on their gross income.
“The proper and lawful income to impose a levy on is the net income,” he said, adding that this aligns with tax laws and global best practices. “In the United States, for instance, companies pay a flat rate of 21 per cent on their profits, determined after all expenses have been deducted. Similarly, in the United Kingdom, a 25 per cent corporation tax is imposed on company profits.”
“From this Court’s knowledge of economics, gross income implies all money that accrues to a person or business within a specific time. This gross income typically does not account for company expenditures such as production costs, rent, vendor payments, staff salaries, taxes, and other costs. It is only after all these payments are made that the company determines its profit, known as net income.”
“Consequently, this Court holds that Section 2 (10) (b) of the National Broadcasting Code, 6th Edition, which demands 2.5 per cent of Gross Annual Income from broadcasters as an Annual Operating Levy, is unconscionable, unfair, and stifling to the plaintiffs,” Justice Omotosho ruled.
Furthermore, Justice Omotosho noted that the plaintiffs had provided credible and documentary evidence showing they had faithfully paid their Annual Operating Levy (AOL) without fail, and the defendant did not challenge these documents.
He said the NBC’s claim that it was entitled to N4 billion, as stated in its letter dated August 15, 2023, was unsupported by any evidence.
Regarding the agreement, Omotosho ruled that when parties express their intention and enter into a binding agreement, neither party is allowed to abandon the agreement simply because one or more of its terms are unfavourable.
The judge declared that the agreement between the defendant and MultiChoice, or the waiver on the payment of N800,000,000 (Eight Hundred Million Naira) throughout their current “DTH license”, is binding on both parties.
He also restrained NBC from demanding any additional sum from the plaintiffs as AOL for the years in which they have already made payments.
He issued a perpetual injunction restraining the NBC, its servants, agents, or privies from sanctioning, fining, or suspending the plaintiffs’ license, contrary to the court’s judgment on the issues raised.
By Modupe Gbadeyanka
Nigerian shoppers now have more payment options on the popular e-commerce platform, Jumia, with the integration of PalmPay after a strategic partnership sealed by both organisations.
It was gathered that this collaboration underscores both parties’ commitment to developing the digital payment ecosystem in Nigeria and growing the use of the cashless economy.
PalmPay is a leading Africa-focused fintech operating Nigeria’s most used mobile wallet and its addition to the Jumia payment gateway will allow shoppers to pay for their purchases with the option to check out with their PalmPay wallet, ensuring a seamless user experience and transaction reliability through the direct integration.
This alliance marks the beginning of a long-term collaboration between two industry giants, aiming to drive innovation, increase convenience for consumers, and foster the adoption of digital payments across Africa.
To celebrate the launch of the partnership, PalmPay and Jumia are launching a special Christmas campaign, running from December 11 to 30.
During this period, customers who make purchases on Jumia using the PalmPay payment method will stand a chance to win exciting cash rewards.
“We are proud to partner with Jumia as we bring together the best of fintech and e-commerce to redefine the online shopping experience.
“This strategic alliance aligns perfectly with our shared commitment to delivering a superior user experience and exceptional value to our customers,” the Chief Marketing Officer of PalmPay, Ms Sofia Zab, said.
“At Jumia, we are dedicated to creating value for our customers by ensuring a convenient, reliable, and secure shopping experience.
“This partnership with PalmPay strengthens our commitment to enhancing the digital payments within our platform.
“By integrating PalmPay, we are providing more options for customers to access affordable and quality goods with the convenience of cashless transactions,” the chief executive of Jumia Nigeria, Mr Sunil Natraj, stated.
By Dipo Olowookere
High-quality pasta made from high-quality wheat, Mama’s Pride Macaroni, has been introduced into the Nigerian market by Crown Flour Mill Limited.
The product was launched at an event in Lagos on Wednesday, December 18, 2024, almost a year after the wheat milling and pasta business of Olam Agri in Nigeria unveiled Mama’s Pride Spaghetti.
The brand ambassador for Mama’s Pride Macaroni is Bimbo Ademoye, an actress, who is expected to use her influence in the Nigerian showbiz industry to drive sales.
Crown Flour Mill disclosed that it manufactured this new brand because of its continued commitment to delivering affordable, tasty, and nutritious food options.
It offers a non-sticky experience for lovers of pasta. It can be enjoyed plain with sauce, jollof, fried, or paired with vegetables.
“I am proud to identify with the business and Mama’s Pride Pasta. We share a common trait, a focus on enriching people’s experience and spreading joy across homes. I can assure consumers that this is the best pasta product in the market in terms of taste and preparation,” the brand ambassador stated.
“We put in so much effort into developing the Mama’s Pride Macaroni brand to build on the success of the spaghetti variance introduced about a year ago.
“This brand continues to garner rave reviews from trade partners and consumers. The Mama’s Pride Macaroni certainly will redefine its segment,” the Managing Director for Wheat Milling Business at Olam Agri in Nigeria, Nitin Mehta, stated.
Also, the B2C Business Head for Grains and Animal Feed at Olam Agri in Nigeria, Siddarth Suri, said, “We are delighted to be releasing the Mama’s Pride Macaroni to the market after careful product research, development and production processes.
“The effort put into the manufacturing of this rich product underlines our commitment to providing superior, top-quality and affordable products to feed the teeming local population.”
Further, the General Manager and Head of Marketing for Olam Agri in Nigeria, Bola Adeniji, stated, “Consumer responses after various product testing engagements show that the Mama’s Pride Macaroni is unrivalled in its segment. This gave us the confidence to go ahead and launch the product on the market.
“Considering pasta meals have become popular among households, our brand is positioned to provide culinary delight across dining. It is versatile and combines perfectly with a variety of sauces and toppings.”
By Modupe Gbadeyanka
An innovative product designed to help consumers conveniently have their parcels or purchased items picked up or delivered seamlessly has been introduced by Uber.
This product Uber package product known as Courier, allows consumers to book a delivery person to collect their prepaid items from stores, whether purchased in-store or online.
To use the service, consumers simply need to prepare the item for pickup, select “Courier” on the Uber app, choose the delivery type (send or receive), input the pickup and delivery addresses, and review the terms and conditions. Upon confirmation of the request, the consumer can monitor the delivery progress in real time via the app.
With store pickups, one can upload a picture of his or her receipt and provide specific instructions for the driver regarding where and how to pick up the items. Additionally, the driver can interact with the store on the customer’s behalf.
Safety remains a core principle that Uber embeds into all products and services. With Store Pickups, users can take advantage of Live Tracking, which allows them to follow the pickup and delivery of their items, and PIN Verification, which provides a unique PIN that the delivery person can use to verify that the correct item has been collected or delivered.
Commenting on this innovation, the Country Manager for Uber in Nigeria, Tope Akinwumi, said, “We aim to stay close to the evolving needs of our consumer base and the introduction of Store Pickups with Courier demonstrates this understanding.
“With Courier, one can send or receive items and also have purchased items picked up in-store, providing convenience for consumers and allowing them to spend more time with loved ones this festive season.”
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