The Central Bank of Nigeria on Monday demanded the resignation of the Group Managing director of Skyebank, one of Nigeria’s biggest commercial banks, along with the board of directors, and has appointed a new boss and reconstituted a new board, but inside sources tell TheSimonAtebaNews that what led to the drastic action by the apex bank went beyond Nigerian shores.
A mix of huge losses and dealings in Dubai as well as the 2015 general elections triggered an underground investigation and what was discovered left the apex bank with no other option but to clean the stinking mess.
The bank, the sources said, might have made huge losses and had refused to publish its 2015 results, afraid of scaring away investors already grappling with a national bad economy.
Nigeria is going through its worst financial crisis in decades with low oil prices and low productivity because of attacks on oil installations by the Niger Delta Avengers.
The CBN had given Nigerian banks till May 2016 to release last year’s results, but in July, Skyebank was yet to make them public.
An outright loss would have sent bad signals to CBN, investors and customers and might have led to panic and perhaps the collapse of the bank.
The sources told this newspaper that some irregularities were also discovered by the CBN, a regulator seen as very tough on corporate governance rules.
It was alleged that Skyebank gave its now gone chairman money to fund his purchase of NITEL, Ibadan electricity company and a hotel in Dubai, the United Arab Emirates. An investigation was opened and it turned out pretty bad, sources said.
There was also a political undertone in connection with the 2015 general elections and former President Goodluck Jonathan who was defeated by President Muhammadu Buhari.
Skye was a major sponsor of the Peoples Democratic Party, TheSimonAtebaNews sources said, pleading anonymity since they were not authorised to speak to the press.
PDP lost power last year to the All Progressives Congress and President Buhari assumed office pledging to fight graft and irregularities.