NEWS

CBN Announces Tokunbo Abiru As New Skye Bank CEO As NPL Exceeds 5% Threshold

Published

8 years ago

July 4, 2016

The Central Bank of Nigeria (CBN) has announced Tokunbo Abiru as the new Chief Executive Officer of Skye bank, who now bears the huge burden of turning around the bank’s huge liquidity challenge and quickly save it from collapse. CBN’s announcement is coming shortly after Timothy Oguntayo, resigned just ahead of a Central Bank pronouncement on Monday over capital adequacy issues.

CBN governor Godwin Emefiele, who announced the new appointment and confirmed Oguntayo’s resignation said that Skye Bank carries quite some huge bad assets that saw the Non-Performing Loans exceeding the allowed 5 percent threshold.

Earlier reports said Skye Bank was 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.

More of the banks were feared to be in same tight liquidity issues but Emefiele, addressing a press conference on the latest development Monday afternoon doused the fears, saying the apex bank was yet to find any other bank in such dire situation.

The Nigeria Deposit Insurance Corporation (NDIC) disclosed recently that Deposit Money Banks’ NPLs reached 4.87 percent in 2015, a situation currently raising concerns around quality of assets in the industry, even though though still within the regulatory threshold of 5 percent.

In its 2015 Annual Report, NDIC had said the industry’s loans and advances to the Nigerian economy stood at ₦13.33 trillion in 2015, indicating some 5.56 percent increase over the ₦12.63 trillion reported in 2014.

“The non-performing loans to total loans ratio for the industry increased from 2.81% in 2014 to 4.87% in 2015, but was within the regulatory threshold of 5%,” the Corporation noted in a mailed summary report.

Governor Emefiele, told journalists that the CBN had been discussing with the Oguntayo’s led management on the need to quickly reverse the huge bad assets which they were practically unable to do till he exited as the bank’s CEO. Oguntayo, led Skye Bank to acquire nationalised lender Mainstreet Bank in 2014,

Emefiele said the CBN hopes the new management would be able to salvage the bank from collapse, explains the reasons from the new appointment.

Skye Bank, a Nigerian based commercial bank and one of the twenty-six (26) commercial banks licensed by the CBN is a large financial services provider in West Africa and Central Africa. With headquarters in Nigeria, the bank maintains subsidiaries in Sierra Leone, the Gambia, the Republic of Guinea, Liberia, Angola and Equatorial Guinea.

As at December 2014, the bank had grown its loan portfolio by 18.4% and saw its assets hit N1.42 trn

The bank’s loans and advances grew from N549.9 billion in 2013 to N651.3 billion in 2014. Specifically, Skye Bank recorded total assets of N1.42 trillion, representing a 26.8 per cent growth over the N1.12 trillion recorded during the corresponding period in 2013.

Source: businessday.online.com

Photo Credit: businessday.online.com

Related Topics:Central Bank of Nigeria (CBN)Mainstreet Bank Nigeria Deposit Insurance Corporation Skye bank

Up Next

President Buhari Appoints New Board Of Director Of NNPC

Don't Miss

Buhari Commends Efforts Of Troops In Combating Insurgencies.

BREAKING NEWS

Lagos To Begin Demolition Of Oshodi Market Extensions On July 30

Published

18 hours ago

May 28, 2024

Reporter

Oshodi market: Lagos to begin demolition of extensions | Fab.ng

On Monday, an official from the Lagos government announced plans to make changes to Oshodi Market. The general manager in charge of building regulations, Mr. Gbolahan Oki, said they will begin removing unauthorised structures from the market by July 30th. This means any shops or buildings that were added on illegally will be taken down.

He said,

“The Lagos State Building Control Agency, in conjunction with the Oshodi-Isolo Local Government Council Authority, has embarked on the sensitization of property owners, residents, shop owners, and market women and men on the removal of illegal structures, extensions built on road setbacks, shops, buildings, and public school premises around the Oshodi-Isolo LCDA.”

Mr. Oki also mentioned that there is a deadline to receive compensation for any structures that will be removed. This deadline is set for July 30th.

He said,

“The expiration period that we are looking at is July 30, and the action we are taking is to remove all the attachments. As you can see, some buildings are right on the road, and it is because of these attachments. Some believe that the attachment is part of the building.”

He added that even though making changes might seem easy to imagine, it can actually be very hard to do in real life.

“If we want change, it is going to affect us, and we are going to have that change at all costs. All these extensions are on work, which should not be. People selling on the road is unnecessary, and that is what we are trying to put in place; it is not a tribal issue. We must all comply with the rules and regulations.”

Mr. Oki encouraged shop owners at the market to take advantage of a special 2-month period.

During this time, they can get approval for their shops from the Lagos State government. Governor Babatunde Sanwo-Olu set the deadline.

“The reason we are here is to enforce; the directive of the governor is very clear; there is no attachment. Nothing should disrupt the flow of movement, which is very important, and that we stand on.”

The Executive Chairman of Oshodi-Isolo Local Government, Kehinde Oloyede, stated that accessibility is essential in every market.

He said,

“For market women to maximise whatever they are selling, they need access to the road. The state government believes that good access to roads would better help them in the performance of their duty, particularly agencies like the fire service.”

Oloyede explained that the local government is working together with LASBCA (Lagos State Building Control Agency). They decided to show leniency to the traders by allowing them to continue their business activities. This is until the festive period is over.

He added,

“The local government is partnering with LASBCA to the end that we have been given grace that after the festive sale ends in July, the state will intervene. However, before then, the local government would see to it that most of these extensions and attachments were removed. Those that fail to comply, then the Lagos State Government will take charge and do what they deem fit.”

Get more news updates here.

ENTERTAINMENT

Uzor Arukwe Says Actors Need To Learn To Accept Criticism

Published

21 hours ago

May 28, 2024

Reporter

Uzor Arukwe says actors need to learn to accept criticism | fab.ng

In a recent interview with Top Charts Africa on May 27, 2024, Nollywood actor Uzor Arukwe opened up about the importance of criticism.

He emphasised that criticism, rather than being something to shy away from, is actually a valuable tool for self-improvement. Arukwe believes that constructive criticism can help us learn and grow as individuals.

“I love criticism and feedback because it helps you to become a better actor. You can’t be an actor if you’re not open to criticism,” he said.

Uzor Arukwe didn’t stop there.

He went on to say that actors, in particular, need to develop thick skin. They should learn how to accept feedback and criticism, even if it’s tough to hear and they don’t necessarily agree with it.

“An actor doesn’t need to love criticism, but they must learn to accept it,” he said.

View this post on Instagram

A post shared by Top Charts Africa ® (@topchartsafrica)

Uzor Arukwe also shared his thoughts on what makes a truly great actor. He explained that it’s not just about delivering lines perfectly.

“There are too many factors involved. One, for me, is the ability to listen and react accordingly. Also, mastering stillness is important too. In this part of the world, we’re taught to react to everything and every situation. But, in reality, people don’t have to react to every utterance and situation. For me, the ability of an actor to attentively and honestly listen and be still is what makes a great actor,” he said.

Arukwe disagreed with the common idea that acting is just about memorising lines. He believes there’s much more to it.

“Acting isn’t really about the lines, but about how you perform in a natural way that makes people question if you’re acting or not,” he said.

Uzor Arukwe is a star in Nollywood who’s been impressing audiences for years. He first appeared on screen in the 2014 film “Unspoken Truth.” His big break came in 2019 with the movie “Code Wilo,” where he played Sergeant Tutu.

Since then, Uzor has racked up credits in a variety of Nollywood films, including “In Line,” “Sugar Rush,” “The Set Up,” “Hire a Woman,” “Kpali,” “Chief Daddy 2: Going for Broke,” and “A Tribe Called Judah.” He’s definitely an actor to watch!

Check out more updates here.

MUSIC

Olamide Hints At A Possible Joint Project With CKay

Published

2 days ago

May 27, 2024

Reporter

Olamide Hints At A Possible Joint Project With CKay | fab.ng

Afrobeats fans are buzzing with anticipation over the possibility of a full-length project between Nigerian music powerhouses CKay and Olamide. This excitement comes hot on the heels of their latest collaboration, the hit song “Wahala.”

A fan fired up on social media, urging the artists to consider a full project together, and Olamide seemed receptive to the idea, replying with a cool “when you ready broksi.”

@ckay_yo when you ready broski…. https://t.co/Lo80DQrUwH

— Olamidé (@Olamide) May 26, 2024

This wouldn’t be their first foray into working together. CKay just featured Olamide on the infectious “Wahala,” which marks their second collaboration after Olamide included CKay on a track in his 2023 album “Unruly.”

“Wahala” itself has been a smashing success, seamlessly blending CKay’s signature emo-pop with the driving rhythms of Afrobeats, and has already raked in over 4 million streams on Spotify.

The potential project could also mark Olamide’s grand return from a hinted retirement after his last album, which he suggested might be his final one. This would be a major win for fans who have been eagerly awaiting new music from the rapper. It would also perfectly align with the growing trend of collaborative projects in Afrobeats.

We’ve recently seen successful joint efforts from artists like Ruger & BNXN, and a project from the highly compatible duo of CKay and Olamide would surely be met with similar enthusiasm.

Check out more music updates here.