The Central Bank of Nigeria has sacked top executives of Skye Bank over capital adequacy issues, a source told Reuters on Monday.
Last year, the central bank gave three commercial banks until June 2016 to recapitalize after they failed to hit a minimum capital adequacy rate of 10 percent.
The Central Bank of Nigeria will partially take over the bank today. The development comes as the bank has been deemed ‘unhealthy’ and is a measure to prevent a total collapse of the financial institution.
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 nationalised but the Central Bank Governor, Godwin Emefiele is expected to clear that up before the end of the week.
Chief Executive Timothy Oguntayo, who led Skye Bank to acquire nationalized lender Main-street Bank in 2014, resigned before CBN’s announcement.