Liquidity Crisis May Trigger Fresh Capital Raising by Banks Skye Bank’s new CEO assures customers of safety of funds Obinna Chima The liquidity crisis identified in Skye Bank Plc, which led to the Central Bank of Nigeria’s (CBN) removal of its board
on Monday, is likely going to result in fresh capital raising by commercial banks, as they seek to maintain the stipulated capital ratios in the face of a weakening macroeconomic
environment. While some banks had at their 2015 annual general meetings earlier this year, obtained the approval of their shareholders to raise
fresh capital, others may be compelled by the development at Skye Bank to seek for ways to beef up their capital bases. Following the failure of Skye Bank to meet the minimum
thresholds in critical prudential and adequacy ratios, resulting in the bank’s permanent patronage of the CBN’s lending window, its huge non-performing loan (NPL)
profile, as well as its low liquidity ratio, the central bank in a proactive move effected a change in the board and Continued on page 6
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N’Delta Militants Bomb More Facilities as Oil Reverses Gains
Ejiofor Alike in Lagos and Sylvester Idowu in Warri
For the second time in two days, the Niger Delta Avengers (NDA), the militant group responsible for the relentless attacks on oil
facilities in the Niger Delta, on Monday night breached two manifolds operated by the Nigerian Petroleum Development Company (NPDC), the exploration and production subsidiary of the Nigerian National Petroleum
Corporation (NNPC), at Batan community in Warri South West Local Government Area of Delta State. The group, which blew up five oil facilities in the wee hours of Sunday morning, also bombed two more trunk lines
belonging to the NNPC in the area and oil well 10 operated by Chevron at Mararaba community in Gbaramatu Kingdom. The reign of destruction by the group is likely to impact oil prices which fell by four
per cent yesterday amid concerns of a global economic slowdown sparked by Britain’s exit from the European Union (EU) and data showing an increase in US crude stock. Several security sources confirmed to THISDAY
yesterday that the bombings took place between 10 p.m. and 11.20 p.m. on Monday night without any resistance from the military. He said the militants had a Continued on page 6
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