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BREAKING: CBN takes over Skye Bank; CEO resigns

CBN takes over Skye Bank, as CEO resigns

The Central Bank of Nigeria [CBN] has sacked all top executives of Skye Bank as the apex bank takes over full management of the bank over capital failures.

Following the takeover over capital adequacy issues, a source with knowledge of the matter told Reuters on Monday that the bank’s shares dipped 9.5%.

“CBN will dissolve the Board of Skye bank and partially take over the bank today”, says the report.

The development comes as the bank has been deemed ‘unhealthy’ and is a measure to prevent a total collapse of the financial institution.

Chief Executive Timothy Oguntayo, who led Skye Bank to acquire nationalised lender Mainstreet Bank in 2014, resigned before a central bank announcement on Monday, the source added.

Skye Bank is thought to have an estimated non-performing loan portfolio of N700 billion, much of which is due to an overexposure in the oil and gas sector. 

All the directors and executives at the bank save for three executives who joined the bank last year have been shown the door.

It remains unclear whether the Bank will eventually be nationalized but the Central Bank Governor, Godwin Emefiele is expected to clear that up before the end of the week.

Last year, the central bank gave three commercial banks until June 2016 to recapitalise after they failed to hit a minimum capital adequacy rate of 10 percent.

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