Business
Skye Bank’s Licence Revocation: Nigerians React
Financial experts and shareholders last Saturday expressed mixed reactions over the decision of the Central Bank of Nigeria (CBN) to revoke the licence of Skye Bank.
The stakeholders expressed their views in separate interviews with newsmen in Lagos, while reacting to the revocation of the licence of Skye Bank by the apex bank.
Prof. Sheriffdeen Tella of the Economics department, Olabisi Onabanjo University Ago-Iwoye, Ogun commended the decision of the apex bank.
Tella said the CBN had helped Skye Bank shareholders by making the announcement at the close of banking hour for the week.
He said the announcement at the close of the week prevented an immediate run on the bank.
According to him, announcement of a buyer was also helpful and would prevent a run on the bank in the coming week.
“There is no time that can be regarded as good for this kind of action but action must be taken whenever it becomes inevitable.
“Such actions are capable of dousing tension that normally follows sudden closure of banks,” Tella said.
He said the shareholders had not really benefited from the bank because they had not received dividend on their investment for a long time.
The economist said in other climes where shareholders were active investors, they would have sold their shares to minimise losses.
“But in Nigeria, majority hold on to their shares even when it is apparent the business is sliding down,” Tella added.
He, however, said the impact on the economy and the banking sector in particular may not be serious, unless another bank ran into trouble within three to six months.
The Managing Director, APT Securities and Funds Ltd., Malam Garba Kurfi, the decision of the apex bank as a regulator could not be faulted.
Kurfi said the development should serve as a lesson to both the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) to put their house in order.
He noted that SEC and NSE should be more active going forward by ensuring suspension of trading on the shares of any bank taken over by CBN to avoid making mockery of the capital market.
He said Skye Bank shares traded on the exchange on Sept. 21 and made some gains only for the licence to be revoked the same day.
“CBN has been demonstrating several times that it has no regards for shareholders but only depositors and as at today the only loser in the bank are the shareholders,” Kurfi said.
He said the shareholders should learn from past experience by exiting any bank taken over by the CBN to avoid regrets.
The General Manager, Anambra Broadcasting Service, Awka, Mr Uche Nworah, said the mandate of the apex bank and the Nigeria Deposit Insurance Corporation (NDIC) was to safeguard depositors.
Nworah said the CBN must have seen a lot of things in the bank before deciding to revoke the licence to protect investors and depositors.
He, however, faulted the apex bank’s approach in terms of information management.
Nworah said the bank’s customers and depositors were the ones that alerted the workers of what was going on in Awka, Anambra State.
Publicity Secretary, Independent Shareholders Association of Nigeria, Mr Moses Igbrude, said the takeover of Skye Bank was a very sad and avoidable story.
Igbrude described the takeover as a total loss for all the bank’s minority shareholders.
He linked the bank’s failure to the acquisition of the former Afribank against the shareholders advice.
“The story started some few years ago when the former management decided to expand by acquiring former Afribank and later Mainstream Bank against the advice of some of us shareholders not to do so.
“They refused to listen to us when we told them that Mainstream Bank was cancerous and political exposed, that the intrigue that would follow the acquisition would consume the bank.
“While shareholders of Skye Bank have lost their investments, what happened to the management who took the decision and those professional consultants who did the due diligence reports that the management rely on to take decision?
“It is high time regulators address the issue fake consultants who parade themselves as professionals or else this will continue to happen,” Igbrude said.
National Coordinator, Progressive Shareholders Association of Nigeria, Mr Boniface Okezie, said the CBN needed to explain its actions to Nigerians for better understanding.
Okezie said the apex bank needed to find a lasting solution to the banking sector crisis which was becoming an embarrassment not only to government but to the investing public.
He said the CBN should be held responsible for the development in Skye Bank because it granted the bank the approval to acquire Afribank.
Okezie said the investors should not be allowed to suffer again for the misdeeds and mistakes of the regulations.
Recall that CBN revoked the licence of Skye Bank and renamed it ‘Bridge Bank’ before settling for the current name Polaris Bank.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
