Business

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

Published

6 years ago

September 21, 2018

Eric

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

Business

Glo Launches New Internet Solution Products for Homes, Businesses

Published

2 weeks ago

April 8, 2024

Eric

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.

Business

Naira Appreciates Further, Sells at N1,280/$ at Parallel Market

Published

3 weeks ago

March 30, 2024

Eric

The naira, on Friday, appreciated to N1,280 per dollar at the parallel section of the foreign exchange (FX) market.

The current FX rate signifies a 5.19 percent appreciation from the N1,350/$ reported on March 27.

Currency traders in Lagos, also known as bureau de change (BDCs) operators, quoted the buying rate of the greenback at N1,260 and the selling price at N1,280 — leaving a profit margin of N20.

“The price of the dollar as well as other major currencies have been falling. It is affecting our business as some customers prefer to keep their currencies than change it with us,” a currency trader identified as Aliyu told TheCable.

At the official section of the FX market, the local currency depreciated by 0.69 percent to N1,309.39/$ on March 28 — from N1,300.43/$ on March 27.

Meanwhile, the Central Bank of Nigeria (CBN), on March 29, said the economy recorded over $1.5 billion in foreign exchange (FX) inflow this month, indicating its monetary policy initiatives are effective.

The apex bank said the naira is headed in the right direction, and the administration of Yemi Cardoso, CBN governor, remains committed to ensuring the stability of the market and the appropriate pricing of the naira against other major currencies worldwide.

TheCable

Business

NNPC Denies Reducing Petrol Pump Price

Published

3 weeks ago

March 28, 2024

Eric

The Nigerian National Petroleum Corporation (NNPC) Limited has declared that there is no plan to reduce the pump price of Premium Motor Spirit (PMS) aka petrol and Automotive Gas Oil (AGO) aka diesel.

The national oil company disclosed this through a statement on Wednesday by its Chief Corporate Communications Officer, Mr. Olufemi Soneye.

He said: “The NNPC Limited wishes to clarify rumours suggesting a price adjustment for Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel) at its retail stations nationwide.

“The company asserts that these reports are false and urges Nigerians to disregard them entirely.

“NNPC Ltd. reaffirms its commitment to sustaining the current sufficiency in petroleum products supply across all its retail stations in the country,” the statement added.