By 
Multichoice Group, owners of DSTV, is grappling with the loss of approximately N31.6 billion trapped in Heritage Bank, recently liquidated by the Nigeria Deposit Insurance Commission (NDIC).
RELATED: Multichoice’s record loss of subscribers: just as much to gain for Showmax relaunch?
Heritage Bank, which had previously partnered with Multichoice Nigeria on projects like Big Brother Naija and the Africa Magic Viewer’s Choice Awards (AMVCA), saw its assets frozen following the liquidation.
According to Multichoice Group’s FY 2024 annual report, the company had a deposit of N33.7 billion with Heritage Bank as of March 31, 2024. However, cash remittances reduced the deposit to N31.6 billion, far exceeding the NDIC’s guaranteed payout of N5 million.
In response, Multichoice stated in its annual report that it would engage with the NDIC to “ensure a reasonable outcome is achieved.” The NDIC, in a June 3, 2024 press release, assured depositors with funds above N5 million of receiving a liquidation dividend, contingent upon the realization of the bank’s assets and the recovery of its outstanding debts.
The NDIC also advertised on June 13, inviting the public to purchase the assets of the defunct Heritage Bank through competitive bidding. This measure aims to recover some of the bank’s liabilities.
Multichoice has also faced challenges due to Nigeria’s fluctuating exchange rate, leading to significant losses in cash repatriations. Additionally, DSTV, one of its flagship services, experienced an 18% drop in active subscribers in Nigeria, reducing its revenue contribution to the group from 44% to 35% as of FYE 2022.
