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Skye Bank gets CBN’s guarantee, Kogi’s IGR collection

By Editor
27 July 2016   |   12:46 am
Skye Bank Plc has received regulatory pass mark as the Central Bank of Nigeria (CBN) as instituted a credit guarantee line for the lender. The development which serves as affirmation ...

Skye-Bank

Skye Bank Plc has received regulatory pass mark as the Central Bank of Nigeria (CBN) as instituted a credit guarantee line for the lender.
The development which serves as affirmation of the apex bank’s confidence in financial institution, is also to ensure that panic withdrawals it suffered in the wake of management reshuffling does not adversely affect its operations.

Already, analysts said the effort lends credence to the regulator’s earlier assertion that The bank is a Systematically Important Bank (SIB), with substantial market share, interconnectedness and significant relevance to the nation’s financial system stability.

According to Bloomberg, apex bank’s spokesman, Isaac Okoroafor, who confirmed the development did not disclose the guarantee sum, but assured that it would assist the lender to shore up its liquidity.

“The short-term lending facility will allow the management of the bank to ensure that some withdrawals it suffered in the wake of the undue panic of last week do not adversely affect its operations. CBN issued guarantees to depositors and creditors of Skye Bank as a demonstration of the bank’s health”, he said.

The guarantee will not only enhance Skye Bank’s inter-bank trading and activities, but also provide assurance to the other banks to continue to deal with and trade with the bank’s instruments in the interbank market.
The CBN had similarly introduced a bank credit guarantee package for some banks in 2009 in the wake of the global economic crisis which affected both the local and global financial markets.

Meanwhile, less than a week after Lagos State Government directed all its agencies, ministries and parastatals to increase business relationship with Skye Bank, Kogi State has re-appointed it as the lead Internally Generated Revenue (IGR) collector.

The re-appointment was contained in a letter signed by the State’s Accountant-General, Alhaji Momoh Jibrin, addressed to the Group Managing Director and Chief Executive of the Bank, Tokunbo Abiru.

Dated July 18 with reference number KSG/TRY/2/S.07/VOL.II/20, the four-paragraph letter titled: “Re-appointment as Lead Collecting bank for Kogi State Internally Generated Revenue (IGR) and Services” lauded the track record of the lender in meeting its obligations and responsibilities, which informed the decision of its reappointment.

Historically, agriculture is the mainstay of the State economy, with abundance of other mineral resources like coal, steel and other mineral industries, with sizable produce like coffee, cocoa, palm oil, cashews, groundnuts, maize, cassava, yam, rice and melon.

Mineral resources include coal, limestone, iron, petroleum and tin. The state is home to the largest iron and steel industry in Nigeria known as Ajaokuta Steel Company Limited and one of the largest cement factories in Africa, the Obajana Cement Factory, owned by Africa’s richest man, Aliko Dangote.

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