Multichoice Group, the parent company of DSTV, is confronting a financial challenge as N31.6 billion of its funds remains inaccessible due to the liquidation of Heritage Bank by the Nigeria Deposit Insurance Commission (NDIC).
According to Multichoice’s annual report for the fiscal year ending March 31, 2024, the company had deposited N33.7 billion with Heritage Bank, which subsequently dwindled to N31.6 billion after cash withdrawals.
Heritage Bank, previously a partner of Multichoice Nigeria, had supported various projects including Big Brother Naija and the Africa Magic Viewer’s Choice Awards (AMVCA).
The NDIC officially announced the bank’s liquidation on June 3, 2024, triggering concerns among depositors, including Multichoice.
In response to the situation, Multichoice has pledged to engage with the NDIC to seek a resolution that ensures a reasonable outcome for its deposited funds.
The NDIC, in its public announcements, assured depositors with sums exceeding N5 million of receiving liquidation dividends pending the recovery of the bank’s assets and outstanding debts.
Multichoice also cited currency exchange rate fluctuations in Nigeria as contributing factors to losses incurred during cash repatriations.
These financial challenges coincide with DSTV recording an 18% decline in active subscribers in Nigeria, where its revenue contribution to the group fell from 44% to 35% compared to the fiscal year ending 2022.
In a bid to recover and utilize the assets of the defunct Heritage Bank, the NDIC has invited interested members of the public to participate in competitive bidding for the bank’s properties, including landed assets and chattels, as advertised on June 13, 2024.
The NDIC announced that in the exercise of its rights as liquidator of failed deposit money banks, it “hereby invites interested members of the general public to buy the assets (landed property and chattels) of defunct Heritage Banks through public competitive bidding.”
Peoples Gazette.
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