MultiChoice Writes Off $21m in Nigerian Bank Fallout as Heritage Liquidation Woes Mount
The South African media giant MultiChoice Group Limited has written off $21 million in funds held at Nigeria’s Heritage Bank, which was liquidated earlier this year following a licencerevocation by the Central Bank of Nigeria (CBN). The disclosure, made in MultiChoice’s interim financial report for the half-year ending September 30, 2024, classified the amount as irrecoverable.
“Following the revocation of Heritage Bank’s banking licenceby the Central Bank of Nigeria on 3 June 2024 and its subsequent liquidation, the group wrote-off its receivable relating to the cash held with the bank,” read the company’s statement.
This financial loss reflects the broader pressures facing companies in Nigeria, where a depreciating naira and soaring inflation have created formidable challenges. MultiChoice also reported a steep drop in cash remittances from Nigeria, with transfers of only $65 million during the period compared to $91 million in the same timeframe last year. Foreign exchange losses compounded the difficulties, resulting in further losses on loans between MultiChoice Africa Holdings and its Nigerian operations.
“Nigeria accounted for 63 percent of our subscriber losses in the Rest of Africa segment,” the company stated, revealing that active subscribers in the region fell by a net 1.1 million. This decline underscores Nigeria’s significant role in MultiChoice’sfinancial strain, with economic turbulence driving down subscriber numbers amid reduced spending power.
MultiChoice, the parent of DSTV, had previously reported an account balance of N31.6 billion with Heritage Bank before the bank’s collapse. In a related development, the Nigeria Deposit Insurance Corporation (NDIC) has announced a December 4 auction of Heritage Bank’s assets, a measure it deems essential to recover funds for uninsured depositors.
The NDIC’s upcoming exercise will involve competitive bidding on 36 Heritage Bank properties across Nigeria, marking another chapter in the fallout from Nigeria’s financial sector volatility.
