Skye Bank Takeover Saved 6, 000 Jobs In Nigeria, NDIC Reveals
Image: Polaris Bank. formerly Skye Bank. Nairaland

The Nigeria Deposit Insurance Corporation (NDIC) has said the takeover of the defunct Skye Bank PLC saved over 6,000 jobs.

Concise News had reported that the Central Bank of Nigeria (CBN) and the NDIC had in September 2018 revoked the operating license of the bank.

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It also transferred its assets and liabilities to a newly licenced bank, Polaris Bank owned by the Assets Management Corporation of Nigeria (AMCON) over failure to recapitalise the bank.

According to the NDIC Managing Director and Chief Executive, Umaru Ibrahim, the move was to save the country’s macroeconomy.

Umaru said this International Trade Fair in Lagos where he added that it saved N949.60 billion with the move.

“The staff are retained in the bridge bank and with this expert arrangement, Polaris was able to continue banking operations in the 277 branches of the bank, over 6,000 jobs were saved and depositors have unhindered access to deposits in excess of N949.60 billion as at June 2018,” he said.

In addition, “As provided for in the NDIC Act 2006, When financial institutions fails, depositors of Deposit Money Banks (DMBs), Non-Interest Banks (NIBs) and Primary Mortgage Banks (PMBs) are reimbursed up to a maximum unit of N500,000, while the maximum insured coverage for depositors of MFBs is N200,000.

“However, it is important to stress that depositors who have funds in excess of the insured limits are paid dividends from the liquidation of failed banks depending on the quality of their assets and outcome of debt recoveries by the NDIC.

“The changing landscape of the Nigerian financial sector brought to fruition the broadening dimension of Mobile Money Operators (MMOs) in Nigeria.

“Although, this effectively altered the scope and depth of regulatory/ supervisory interventions, but the NDIC remains resolute in its determination to safeguard depositors’ funds.

“As it stands, the number of licensed MMOs by CBN is currently 23, with eight being Bank-Led and the remaining 15 Non-Bank Led.

“As at 2017 year end, the number of accounts in the MMOs stood at over 153 million. The NDIC provides deposit insurance coverage to subscribers of MMOS to the maximum limit of N500,000 through the Pass-Through Deposit Insurance Framework.

“This is to further promote financial inclusion drive across the broad spectrum of the Nigerian economy.”