The Central Bank of Nigeria (CBN), has dissolved the executive board of Skye Bank and has taken over pending when a buyer is found.
It was reported earlier today that there is a rumour of an imminent dissolution and takeover of Skye Bank by Central Bank of Nigeria.
It has now been officially reported by DailyPost that the Central Bank of Nigeria (CBN), has dissolved the Board of Skye Bank and has taken over, pending when a buyer is found.
The apex bank reportedly took the decision as Skye Bank has been deemed ‘unhealthy’ and the step is apparently a measure to prevent a total collapse of the financial institution.
The bank is believed 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 who joined the bank last year have been shown the door while the managing director, Timothy Oguntayo, has already dropped his resignation.
The bank would be taken over by CBN and possibly handed over to the Asset Management Company of Nigeria (AMCON) who would buy up the bank’s toxic loan and then make efforts to recover them from the bank’s chronic debtors.