Skye Bank: Nigerian govt tells CBN, NDIC to prosecute directors

The Minister of Finance, Mrs Zainab Ahmed, has urged the Central Bank of Nigeria (CBN) and Nigeria Deposit Insurance Corporation (NDIC) to investigate and prosecute directors that led to the collapse of the defunct Skye bank.
The minister said this in a statement by the Head, Communication and Public Affairs of the NDIC, Mr Mohammed Ibrahim, on Friday in Abuja.
According to the statement, Ahmed made the call when she visited the Management of NDIC, led by its Managing Director and Chief Executive, Alhaji Umaru Ibrahim in Abuja.
She also urged the CBN to prosecute all other executive management that contributed to the collapse of other Deposit Money Banks (DMBs) in the country.
The minister expressed concern about the spate of non-performing loans in the banking industry.
She said the bail-out of distressed financial institutions was necessary in the interest of the stability of the banking system.
She also emphasised the need for investigation and prosecution of delinquent Board Directors and Executive management of financial intuitions who abused the trust placed on them by depositors.
She urged the CBN and the NDIC to use the recent failure of the defunct Skye Bank Plc as an opportunity to deal with those found culpable in the course of the investigations.
According to the minister, this will deter other operators as the Federal Government will not treat such serious infractions with levity.
The minister commended the NDIC for the thoroughness of its bank examination reports which was acknowledged in the banking system.
She also expressed appreciation to the Corporation for the prompt payment of its contribution under the Fiscal Responsibility Act.
She said: “The Federal Government regards the NDIC as a critical player towards the actualisation of its Economic Recovery Growth Plan (ERGP).