CBN takes over Skye Bank , sacks management board

CBN - Skye Bank not Liquidated

The Central Bank of Nigeria took over the Board and management of Skye Bank Plc today (July 4, 2016) after the bank failed to turn the bank’s fortunes around despite several warnings from the apex bank.

A large chunk of the management team and board of Skype Bank has resigned and the Central Bank of Nigeria has appointed a new chairman and management to immediate steer the affairs of the bank.

This follows the resignation of the bank’s Chairman, Chief Tunde Ayeni, and Management Director/Chief Executive Officer, Mr. Timothy Oguntayo.

CBN also installed Alhaji MK Ahmad as the new chairman, while Mr. Tokunbo Abiru is the new MD/CEO. CBN Governor, Mr. Godwin Emefiele also urged shareholders and customers of the bank to remain calm as the bank was not in distress.

The bank is one of nine commercial banks the Central Bank of Nigeria wrote letters to in November 2015 with serious issues with their liquidity.

Two internal memos was sent to employees of the bank on Monday afternoon.

he first memo was a notice of resignation by the outgoing group managing director of the bank, Timothy Oguntayo.

In the email, Mr Oguntayo stated that despite his best effort to turn around the fortune of the bank, “counter forces from within and outside the bank…made it impossible to achieve steady progress.”

“The last two years of my stewardship as the GMD/CEO, has been very eventful and challenging,” he wrote.

“I have put all that I have into turning the fortune of the bank around, working with each and every one of you. However, the results have not been commensurate with the efforts. There have been counter forces from within and outside the bank that made it impossible to achieve steady progress.”

“It is in this vein that I have offered to resign my appointment as the GMD/CEO with immediate effect. I enjoin you to all to cooperate with the new management that would be announced soon,” the memo that was sent at 12:11 P.M read.

About an hour after employees received the first email, they received another message announcing the “voluntary”resignation of the bank’s board and entire management team, except two directors.

“I wish to inform you all of changes on the Board of Skype Bank. Earlier today, Dr. Tunde Ayeni and the other non-executive directors of the bank, namely, Mr. Victor Odozi, Mr Babajide Agbabiaka, Dr. Jason Fadeyi, Mr. Kunle Aluko, Mr Victor Adenigbagbe, Mr Abdul Bello and Hjiya Amunna Lawan Ali resigned their positions on the board of the Bank,” the email read.

They failed repeatedly to meet the minimum key liquidity and capital adequacy ratios forcing the CBN to intervene in order to protect depositor’s funds before they are eroded.

The bank found itself in the precarious position due to many bad debts it was owed running into billions of Naira.

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