MultiChoice Group Limited has written down $21 million in deposits at Nigeria’s Heritage Bank, which was liquidated earlier this year, Cyber Reporters report.
This disclosure was made in the company’s interim financial statements for the half-year period ending September 30, 2024.
The amount was declared irrecoverable after the Central Bank of Nigeria removed Heritage Bank’s operating license, thus closing down the institution.
The financial statement document read, “Following the revocation of Heritage Bank’s banking license by the Central Bank of Nigeria on 3 June 2024 and its subsequent liquidation, the group wrote off its receivables relating to the cash held with the bank.”
MultiChoice’s move to write off the money highlights the challenges that companies in Nigeria’s banking sector face, especially in light of the country’s fragile economy.
Before Heritage Bank’s insolvency, DSTV’s owners, Multichoice Group, claimed to have an N31.6 billion account balance with the bank.
To recoup money for uninsured depositors, the Nigeria Deposit Insurance Corporation declared plans to dispose of properties and assets owned by the now-defunct Bank.
Under Section 62(1)(d) of the NDIC Act, 2023, the NDIC’s legislative responsibility as the liquidator of insolvent banks includes this action, which it deems vital.
The exercise, scheduled to begin on December 4, 2024, will involve competitive bidding for the bank’s landed properties and chattels located at 36 sites nationwide.
