Breaking! CBN Sacks Skye Bank Top Executives


The central bank of Nigeria, CBN, has reportedly sacked top executives of Skye Bank over capital adequacy issues.

Also, sources disclose that some top management and non-executive directors of Skye Bank of Nigeria today resigned in anticipation of the planned dissolution of the board and management cadres by the CBN.

Skye Bank’s Chief Executive Officer, Timothy Oguntayo, who led the Bank to acquire Mainstreet Bank in 2014, was among those who resigned.

The CBN has discreetly worked on removing directors of some commercial banks that have demonstrated a level of distress in the last few months.

This resignation of Skye Bank management is a pre-emptive action by the bank to avoid a total clampdown by the CBN as it plans to remove directors in banks with bad debts in the next few days.

Recall that 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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In other developments, the CBN has warned commercial banks to desist from giving sensitive banking roles to contract staff, as they may not have a stake in the banks.

CBN Director, Banking and Payments System Department, ‘Dipo Fatokun who disclosed this at the weekend during the unveiling of the Nigeria Electronic Fraud Forum (NeFF) report in Lagos, said the apex bank has severally encouraged banks to ensure that their staff are those with something at stake.

Fatokun said a temporary staff may not have a stake in the bank so to say. So, it is encouraged that if they have staff that are not permanent, they should not give them responsibilities or roles that will expose them to critical functions of a bank.

He further adds that if a person is given an authority to approve transactions of high magnitude, and he does not have a stake in the bank, then that spells danger.

He believes many banks understand the need to rely on their key staff for major duties, which is one of the reasons the fraud attempts have been rising, but the value lost declining.

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Fatokun said the CBN will continue to encourage banks to utilise the services of local service providers, where those services exist in Nigeria and enforce the necessary security standards and protocols for the protection of systems as contained in existing guidelines.