N31.6 billion belonging to Multichoice (DSTV Nigeria) trapped in liquidated Heritage Bank
The liquidated bank had previously formed a partnership with Multichoice Nigeria by sponsoring some of their projects, including Big Brother Naija and the Africa Magic Viewer’s Choice Awards (AMVCA).
Multichoice Group’s annual report for FY 2024 revealed that, as of the 2024 fiscal year’s end on March 31, 2024, it had a deposit of N33.7 billion with the bank.
How ever DSTV can only get this money back when NDIC is done selling the assets of the distressed bank.
MultiChoice also reported total annual losses for the year 2023 of $217 million back-to-back, the second time in a row in two years.
As a result, DSTV declared losses in the entire African market in which it operates.
As I was reading their report this evening, something caught my eye.
Devaluation and inflation in key markets like Nigeria reduced consumer spending power, leading to a decline in active subscribers. Its number of active subscribers in Nigeria was 8.1 million (a 1.2 million decline), reducing the country’s revenue contribution to the Rest of Africa segment from 44% to 35%.
Mass-market customers in countries like Nigeria had to prioritise basic necessities over entertainment,” MultiChoice said in its executive summary announcing the results.
Let me put this into proper perspective.
In Nigeria, 1.2 million subscribers have stopped watching DSTV in the past year because of economic hardship and poverty.
Loss of business from 1.2 million subscribers is a big loss and a massive blow to any business, regardless of the size.
This economic data from Nigeria showing how bad things are is worrying.
I wonder if our economic policymakers in Abuja are paying attention.
How do they even manage to sleep at night, given the increasing decline in purchasing power, how dire things are and the rising poverty in the land?
