MultiChoice Laments N31.6 Billion Trapped in Heritage Bank as NDIC Moves to Auction Bank's Assets
- MultiChoice, owners of DStv and GOtv, said it has N31.6 billion trapped in the failed Heritage Bank
- The company disclosed that it will engage the NDIC to reach a fair payout since the amount is far above the N5 million insured amount
- MultiChoice disclosed that it suffered forex losses in Nigeria and had repatriated about $184 million to its home country
The MultiChoice Group, owners of DSTV, said it had an account balance of N31.6 billion with the liquidated Heritage Bank.
The satellite television company disclosed in its annual report for the 2024 Financial Year that it had a deposit of N33.7 billion with the bank as of the 2024 fiscal year ending on March 31, 2024.
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MultiChoice in a dilemma
The company disclosed that the balance was subsequently reduced to N31.6 billion due to remittance before the Central Bank of Nigeria revoked the bank's license on June 3, 2024.
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The development raises concerns for the company as the insured sum is, at most, the N5 million payout guaranteed by the Nigeria Deposit Insurance Corporation (NDIC).
MultiChoice disclosed that it would engage the liquidator, NDIC, to reach a reasonable outcome and ensure a fair repayment.
The NDIC announced the liquidation of Heritage Bank in a statement on June 3, 2024. The statement stated that depositors with funds exceeding N5 million would receive a liquidation dividend after the bank's assets, which have now been listed for sale, were disposed of.
MultiChoice subscribers decline
According to reports, Heritage Bank sponsored MultiChoice's Big Brother Naija and Africa Magic Viewer's Choice Awards (AMVCA).
The company disclosed its financial year report that it had repatriated $184 million from Nigeria, representing a 39.4% increase from the $132 million repatriated the previous year.
MuliChoice disclosed that it incurred losses on its cash repatriations from the Nigerian market due to forex issues.
The DStv and GOtv owners said there was an 18% decline in active subscribers in Nigeria, as the country's contribution to its revenue dropped to 35% from 44% recorded in 2022.
Nigerian court penalizes MultiChoice
Legit.n had reported that the Competition and Consumer Protection Tribunal (CCT) in Abuja stopped the company from increasing its subscription and awarded a one-month free subscription for DStv and GOtv subscribers.
The company appealed the court's ruling, arguing that the decision did not fit its business model.
Multichoice gives reasons for DSTV, GOTV subscription increases
Legit.ng earlier reported that Multichoice Nigeria announced the price adjustment of all DStv and GOtv packages in Nigeria on Wednesday, April 25, 2024. The company said the new prices are expected to take effect from May 1, 2024.
Legit.ng reports that the latest increase is the second in the last four months and the fourth in 2 years.
In March 2022, Multichoice announced an increase in the prices of its DStv and GOtv packages.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
