More facts have emerged as to why the Central Bank of Nigeria (CBN) revoked the operating license of the now-defunct Skye Bank Plc. In a press release issued this evening, it noted that the result of its examinations and forensic audit of the bank revealed that the bank required urgent recapitalization, as it could no longer continue to live on borrowed times with indefinite liquidity support from the CBN. Shareholders were, however, unable to recapitalize it.
In consultation with the Nigerian Deposit Insurance Corporation (NDIC), it had decided to create a bridge bank Polaris Bank which the Asset Management Company of Nigeria (AMCON) will recapitalize. AMCON will then sell its stake in the bank.
As a responsible and responsive regulator and in consultation with the Nigerian Deposit Insurance Corporation (NDIC), we have decided to establish a bridge bank, Polaris Bank, to assume the assets and
liabilities of Skye bank. The strategy is for the Asset Management
Company of Nigeria (AMCON) to capitalize the Bridge Bank and begin
the process of sourcing investors to buy out AMCON. By this decision, the licence of the defunct Skye Bank is hereby revoked.
Deposits are safe
Emefiele also allayed the fears of customers of the erstwhile bank, concerning their deposits.
“We wish to assure all depositors that under this arrangement, their deposits shall remain safe and that normal banking services shall continue in the new bank on Monday, 24th September 2018, to enable customers to transact their businesses seamlessly.”
The Apex bank also assured all employees of the bank will be absorbed by Polaris Bank under a new contract unless an employee decides to opt out. The bank has also decided to retain the current board and management of the bank.
The CBN on July 4, 2016, sacked the board of Skye bank. Then Managing Director of the bank, Mr Timothy Oguntayo resigned along with his deputy, Mrs. Amaka Onwughalu and two other executive directors Mr. Dotun Adeniyi and Mrs. Ibiye Ekon. Non-Executive Directors and Independent Directors also stepped down.
Alhaji M.K Ahmad was appointed Chairman, while Mr. Tokunbo Abiru was named Group Managing Director and CEO. In July 2018, the tenure of the interim management was extended.