Nigerian Stock Exchange removes two banks from Official List

The Nigerian Stock Exchange (NSE) has delisted two defunct banks- Skye Bank Plc and Fortis Microfinance Bank Plc. This brings an end to shares exchange for the defunct banks.

The delisting was sequel to the decision of the National Council of the NSE, which had approved the delisting of the two defunct banks.

The NSE explained that the delisting was due to the revocation of the operating licenses of the defunct banks by their primary regulator, the Central Bank of Nigeria (CBN).

It would be recalled that the CBN had on July 4, 2016 taken over the management of the Skye Bank by reconstituting the board of directors and management of the bank to pave way for a new team to take charge of the bank and resolve various issues that were perceived to be hindering its optimal performance.

The apex bank then gave the new board and management a clear mandate with particular focus areas to turn the institution around positively.

The apex bank in July 2018 extended the tenure of the board of directors and management of Skye Bank for another two years till June 30, 2020. However, on September 21, 2018, the CBN revoked the operating license of Skye Bank and licensed Polaris Bank as a bridge bank to take over assets and liabilities of defunct Skye Bank.

Similarly, the NSE had in November 2018 suspended trading on the shares of Fortis Microfinance Bank and five other companies after they were said to have failed to adhere to best corporate governance and extant post-listing requirements.