Skye bank liquidation: Shareholder faults CBN …Says CBN giving capital market investors wrong signal

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Skye bank liquidation: Shareholder faults CBN

.Says CBN giving capital market investors wrong signal

By Our Reporters

The CBN Governor:

The National President, Constance Shareholders’ Association of Nigeria, Shehu Mallam Mikail, has alleged that the action taken by the Central Bank of Nigeria, CBN, on liquidation of Skye Bank is tantamount to a system of mafias against voiceless retail shareholders, capable of eroding the confidence of investors in Nigeria’s capital market.

According to Mikail, “The action of the monetary authority taken without due consultation with shareholders may likely have negative economic implications not only on the financial sector, but on Nigeria’s economy at large, especially as the country is experiencing slow rate of economic growth”.

He went on, “This is quite obvious because the same regulators appointed the interim board and management of the bank since 2016 till date. The same regulators also extended their tenure for another two years without coming out to call for a meeting with shareholders.

“The same regulators did not also brief shareholders on their stewardship till date and now CBN is saying the bank needs recapitalisation. How would they explain this?

He asked, “The questions now are; did the CBN seek shareholders’ opinion? At the close of the market that day, the stocks were traded, now what kind of regulation is this in Nigeria, where an action is taken without due process? What signal are the regulators giving the world?  The action taken by the monetary authority shows that, there is no information sharing among regulators, shareholders and stakeholders in the financial sector of this country”.

He alleged, “The action taken by the CBN is a clear demonstration of the fact that we do not have active government that can protect the economy.  This is a slap on shareholders and would not take it lightly with the bodies concerned.”

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