South Africa’s Pay-TV operator Multichoice Group has taken a write-off of N31.6 billion, about $21 million in deposits held with the recently liquidated Heritage Bank of Nigeria. The financial adjustment is part of disclosure made by the company in its results for the six-month period ending September 30, 2024.

Multichoice, in its interim report on 2024 fiscal year said the balance at Heritage Bank as of 31 March 2024 stood at N33.7 billion. However, cash remittances before that bank was liquidated stood at N31.6 billion. The Company had no choice but to write off a significant amount from its receivable as relates to the deposit following receipt of the revocation letter regarding its banking license issued by the Central Bank of Nigeria on June 3, 2024; meantime, it has provided for this deposit as part of the Group’s operating losses for the period under review.

When the operating license granted by the CBN was revoked, Heritage Bank’s operation was liquidated, and NDIC became its liquidator.

The NDIC has since begun paying out insured deposits of up to N5 million per depositor, though MultiChoice’s deposit exceeds this limit. In response, the Group has indicated it will engage with the NDIC to seek a reasonable outcome, given the large sum involved.

Additionally, Multichoice reported continued challenges due to the depreciation of the Nigerian naira against the US dollar, which led to foreign exchange losses on loans. The Group also highlighted a reduction in its cash holdings in Nigeria, reporting USD 11 million in cash at the end of the period, down from USD 39 million as of March 31, 2024. Despite these challenges, Multichoice was able to repatriate USD 65 million from its Nigerian operations during the period, albeit at a higher exchange rate compared to the previous year.

The NDIC has stated that it is working diligently to recover assets and repay uninsured depositors through the liquidation of Heritage Bank’s physical assets and investments.