Nigeria MultiChoice Faces Financial Setback as $21 Million Is Forfeited Due to Heritage Bank’s Collapse

MultiChoice forfeited a $21 million deposit with Heritage Bank after the bank's liquidation in 2024. The loss is part of the company's financial challenges in Nigeria, including a drop in cash remittances and subscriber losses, worsened by inflation and naira devaluation.
MultiChoice Group has written off a $21 million deposit held in Heritage Bank following the bank's liquidation in 2024. This move was disclosed in the company’s half-year financial report for the period ending September 30, 2024. The Central Bank of Nigeria (CBN) revoked Heritage Bank's banking license on June 3, 2024, and the National Deposit Insurance Corporation (NDIC) took control of its assets. As a result, MultiChoice adjusted its financials, acknowledging the loss of funds previously held with the defunct bank.

In the report, MultiChoice stated that it had initially held an account balance of N33.7 billion with Heritage Bank, but that amount was reduced to N31.6 billion before the bank's closure. The write-off of the $21 million was a consequence of the bank's liquidation and the group's decision to account for the loss. MultiChoice’s total cash remittances from Nigeria in 2024 showed a decline, with only $65 million extracted in nine months, down from $91 million in the previous year.

The company also noted that the weakening naira and devaluation have had a significant impact on its operations in Nigeria. It reported that Nigeria was responsible for 63% of the subscriber losses in the “Rest of Africa” segment, and the net loss of 1.1 million subscribers from FY23 was mainly attributed to economic challenges such as inflation and currency depreciation.