The Central Bank of Nigeria (CBN) has taken over Skye Bank of Nigeria, believed to be one of those distressed in the country, reports have indicated.
This action has prompted Mr Timothy Oguntayo, the managing director, and other top management of the bank including all non-executive directors, to resign ahead of a perceived mass purging by the apex bank.
The resignation of the management at Skye Bank was 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. Inside sources claim Skye bank has over N700 billion in bad loans.
The CBN hammer hit the bank about a week after the top financial regulator threatened to sack the chief executive officer and chairman of any bank that fails to publish its financial statement within the regulatory period.
