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Just In: CBN Revokes Skye Bank’s Licence (Full Text of Press Statement)

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The Central Bank of Nigeria has revoked the operating licence of Skye Bank Plc with immediate effect.

Governor of Central Bank, Godwin Emefiele, disclosed this during a press briefing in Lagos on Friday.

He said that Skye Bank would now be taken over by Polaris Bank, which would take over all the assets and liabilities of the defunct entity.

Below is full text of press statement:

Gentlemen of the Press
1. You will recall that on 4th July 2016, we took a regulatory action on
Skye bank Nigeria PLC. Specifically, this action led to the resignation of
the Chairman, all Non-Executive Directors on the Board as well as the
Managing Director, Deputy Managing Director, and the two longestserving
Executive Directors on the Management Team
2. At that time the proactive action was informed by unacceptable
corporate governance lapses as well as the persistent failure of Skye
Bank PLC to meet minimum thresholds in critical prudential and
adequacy ratios, which culminated in the bank’s permanent presence at
the CBN Lending Window.
3. The focus of the action then was to save depositors’ funds and to ensure
that the bank continued as a going concern, being a systemically
important bank. Part of our intention was also to stem the imminent job
losses to staff if a liquidation option had been adopted. These objectives
have been fully achieved and the bank has been able to meet customer
obligations, having curtailed the liquidity haemorrhage and restored
depositor confidence.
Indeed, the bank’s performance has improved considerably compared to
the pre-July 2016 era.
4. The result of our examinations and forensic audit of the bank has,
however, have revealed that the Skye bank requires urgent
recapitalisation as it can no longer continue to live on borrowed times
with indefinite liquidity support from the CBN. The shareholders of the
bank have been unable to recapitalize it.
5. 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.
6. 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.
7. Thus, all customers of Skye Bank shall be automatic customers of the
new bank and their accounts and records duly purchased by Polaris
Bank.
8. Given the good performance of the board and management, the CBN
shall retain them. In addition, all employees of Skye Bank shall be
absorbed by Polaris Bank under a new contract unless any employee
decides to opt out.
9. We wish to assure the general public that the Nigerian banking industry
remains safe and resilient and that the CBN will continue to live up to its
responsibilities of promoting stability in the banking and financial
system.
Thank you.
Godwin I. Emefiele, CON
Governor, Central Bank of Nigeria

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FirstBank Appoints New MD/CEO, Alebiosu

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First Bank of Nigeria has appointed Olusegun Alebiosu as its new Managing Director with effect from April 2024.

The Bank stated this in a release signed by its acting company secretary Adewale Arogundade.

Alebiosu takes from Adesola Adeduntan, who resigned abruptly on Saturday with eight months left to complete his tenure in December 2024.

The release stated that “following the resignation of the managing director/CEO of FirstBank, Dr. Adesola Adeduntan, the Board of Directors has appointed Olusegun Alebiosu as the acting CEO of the 130-year-old institution.

“The appointment takes effect immediately and is subject to the approval of the Central Bank of Nigeria.”

The release stated that Alebiosu was until this appointment the executive director, chief risk officer and executive compliance officer since January 2022. Prior to that, he was the Group executive/ chief risk officer, a position he held since 2016.

“Alebiosu brings to the executive management of FirstBank over 28 years’ experience in the banking and financial services industry with cross-functional exposure to Credit risk management, Financial planning and control, Credit and marketing, Trade, Corporate and commercial banking, Agriculture financing, Oil and Gas, Transportation (including Aviation and Shipping) and Project financing.”

It added that the new acting MD/CEO commenced his professional career in 1991 with Oceanic Bank Plc (now EcoBank) and prior to joining FirstBank in 2016 served as Chief Risk Officer at Coronation Merchant Bank Limited, Chief Credit Risk Officer at African Development Bank Group and Group Head, Credit Policy & Deputy Chief Credit Risk Officer at United Bank for Africa Plc.

“He is an alumnus of Harvard School of Government and holds a Bachelor’s degree in Industrial Relations and Personnel Management. He also obtained a Master’s degree in International Law and Diplomacy from the University of Lagos and holds a Master’s degree in Development Studies from the London School of Economics and Political Science.

“He is a member of various professional bodies namely, Fellow, Institute of Chartered Accountants (FCA), Associate, Nigeria Institute of Management (ANIM), Chartered Institute of Bankers of Nigeria (CIBN) and Member, Nigeria Institute of International Affairs.”

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Again, Naira Slumps Against Dollar, Trades at N1,169/$1 in Official Window

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The Naira, on Friday, slumped for the second consecutive day against the American dollar at the official window trading at N1,169/$1, according to data from the Nigerian Autonomous Foreign Exchange Market (NAFEM).

At the end of trading on Friday, the Naira lost N15 against the dollar when compared to the previous exchange rate of N1,154/$1 on Thursday, April 18, 2024.

The intra-day high and low recorded during the day were N1,236/$1 and N1,021/$1 respectively, representing a lean spread of N215/$1.

Similarly, the Naira slumped against the dollar at the parallel market for the second consecutive day to trade at N1,150/$1 representing a loss of N50 when compared to the N1,100/$1 it traded the previous day.

The British Pound also slumped against the Naira by N50 to trade at N1,500/£1 as against the previous trading price of N1,450/£1 representing a loss of N50 for the local currency,

The Canadian dollar however closed flat against the Naira to trade at N1,000/CA$1 same as the previous trading day rate of N1,000/ CA$1.

The Euro also slumped against the Naira to trade at N1, 280/€1 as against the rate of N1,200/€1 the previous trading rate indicating a gain of N80 in the European currency.

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Glo Launches New Internet Solution Products for Homes, Businesses

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Two new products, which provide internet connectivity solutions specially designed for Residential and SME commercial customers, have been unveiled by digital solutions company, Globacom.

The products, Fibre to the Home (FTTH) and Fibre to the Business (FTTB) were packaged for Glo customers to enjoy reliable and high speed internet through linked fibre services.

Globacom said in a statement in Lagos “With these services, businesses and homes can access dedicated internet speeds of up to 1GBps, allowing unlimited internet usages for seamless video calls, video and music streaming and a whole lot of other dedicated usages to promote business success and equally provide endless entertainment for homes”.

It explained that the new product comes with a unique opportunity for “Residential Estates, High Rise Apartments, Commercial SME Estates to enjoy dedicated high speed internet in their cluster”.

These services, according to Globacom, give exceptional experience and unmatched speed for users at home or in offices and are provided through hi-speed fibre – unlike copper which was being used in the past.

Positioning itself as the premier provider of innovative solutions for businesses of all sizes, Globacom assured customers of the best value for money with the new offerings, adding that users who sign on for these services will also enjoy fully dedicated bandwidth.

“We are committed to delivering the most cost-effective data connectivity experience for homes and businesses in addition to providing dedicated and reliable services.” Globacom concluded.

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