Banking
Skye Bank On Edge Of Total Collapse?
By Dipo Olowookere
It is no doubt that since the Central Bank of Nigeria (CBN) changed the leadership of Skye Bank some weeks ago, the bank has not remained the same again.
Skye Bank and CBN have had to assured depositors and the general public that all is well, trying every possible means to allay the fears of people, especially depositors.
Also, the Lagos State government, which uses the bank for collection of different levies, including for tax collection and payment of workers’ salaries, has also said the bank is healthy. In fact, it told civil servants under its payroll not to close their accounts with the bank.
Vanguard takes a look at the issue and below was what the respected newspaper said on the issue.
Why CBN and Lagos state might fail to save Skye Bank
“SKYE Bank is not distressed.” CBN advert in several newspapers.
The Central Bank of Nigeria, CBN, and the Lagos State government have different reasons for desperately averting possible Skye Bank distress. Even the hint of likely distress inhibiting deposits and inviting a run on the bank is not in their interests. For the CBN, the collapse of any bank, at this time, is likely to create collateral damage affecting other banks, governments, the organized private sector and the financial system. So their anxiety on this matter is understandable.
Before the CBN advertisement, the Permanent Secretary, Lagos State Ministry of Finance was reported to have told Lagos State employees not to close their accounts with Skye bank.
The report was not clear whether what was issued was an order, a plea, or advice. None of them is without its perils for all concerned – Lagos State, the bank and the employees.
It is questionable if an employer, even a government can issue instructions to its employees regarding the bank to patronize after paying them.
While it might be acceptable for administrative reasons to request all employees to open accounts with a bank for salary transfers, it is doubtful if the state can force the civil servants to keep their money in the designated bank and risk their funds going down in case of distress.
Who then will suffer the consequences?
Advice, the public servants definitely don’t need especially when only the state’s and the bank’s interests will be served by compliance. SKYE bank certainly needs all the deposits it can get – more than ever before.
The state being a major shareholder in the bank also needs the bank to recover the confidence of other stakeholders in order to survive and perhaps improve its performance.
Depositors, including the staff of Lagos state, however, need a different sort of counsel. They need to be honestly informed about the real situation of the bank.
The CBN does not, without reason, order the change of directors and management of a bank unless a lot of things have gone wrong and some individuals charged with the management of the bank were involved – deliberately or inadvertently.
More perplexity is introduced by the fact that the directors and managers removed will apparently walk away without sanctions for putting every other stakeholder at risk.
Hundreds of thousands of depositors of SAVANNAH Bank and SOCIETE GENERALE Bank are still holding to empty air more than ten years after those banks were closed without previous warning from the CBN.
OCEANIC, INTERCONTINENTAL, BANKPHB etc were presented to the public as still strong banks until Sanusi replaced Soludo who helped to keep up the fiction of soundness.
So, why should depositors rely on a CBN which had failed them repeatedly and made them to pay dearly for it? To be quite candid, the last organization to declare a bank distressed is the CBN. Usually by then the depositors have been taken to the cleaners and their funds irretrievably lost.
Lagos state has its own problems with regard to SKYE Bank. Its shares in the bank, which sold for N17.50 per share in October 2008, are now going begging at 65 kobo per share.
The state has lost hundreds of millions of naira on that investment.
The quantum of loss is one of the most closely guarded secrets of the progressive governments since “Con-Soludo-tion” imposed by the CBN under Professor Soludo.
There is no shareholder alive who was not a victim of the calamity called “Con-Soludo-tion”. Lagos State is one of the biggest victims of the rush to acquire shares under “Con-Soludo-tion”, and it is understandable why the current government is eager to minimize the losses.
But, the truth remains. A grave mistake had been made; an error of judgment committed at the topmost levels of government.
As Agathon, 447-401 B.C, has reminded us, “Even God cannot change the past.” Lagos State is unlikely to recover those investments even if Ambode serves a second term.
The statement issued by the Perm Sec, if followed by public servants in the state, carries with it the risk that the state’s funds, now largely lost, will be followed down the drain by those of its staff – if anything goes wrong with SKYE Bank.
That would amount to a great disservice to the workers who were not consulted when the Governor who committed the state took the decision – admittedly in good faith.
But, such is life. There is always a lot of risk in banking. If there is none, everybody will be in banking. There is also a lot of risk in shareholding. If not, everybody will be in that venture too. In Nigeria, the combination of the two had almost always proved painful for a lot of people – except the insiders and manipulators who invariably walk away free. To some extent the reason Nigerian banking appears to be perpetually embroiled in crisis can be traced to our very lax laws which allow directors of banks to get away with their larcenies.
Until we stiffen the penalties for contraventions of banking rules, the nation will reel from one crisis to another.
Finally, it is curious that while others are desperately working to save the bank, its own directors are doing nothing. They are not reaching out to public opinion molders to present their plans for restoration of the bank.
http://www.vanguardngr.com/2016/08/cbn-lagos-state-might-fail-save-skye-bank/
By Aduragbemi Omiyale
The artificial intelligence (AI)-powered credit platform designed by VeendHQ, Vida AI, has been used to recoup about N69 million from a N172.5 million portfolio of loans that were more than 90 days overdue.
This feat was achieved through the platform in a pilot that highlights the growing role of technology in loan recovery and portfolio management.
VeendHQ disclosed that the pilot delivered a 40 per cent recovery rate on the overdue loan portfolio, boasting that this significantly outperformed traditional recovery benchmarks, where a 5 per cent recovery rate on a similar loan book would amount to about N8.6 million.
This achievement comes at a time when lenders are under increasing pressure to improve recovery outcomes while managing the cost, reputational risk, and operational burden associated with overdue loans.
For many credit providers, the challenge is no longer only how quickly loans can be approved, but how effectively repayment can be monitored and delinquent loans can be recovered after disbursement.
VeendHQ said the pilot demonstrates how Vida AI can support lenders beyond credit assessment, extending into repayment monitoring, collections, and recovery.
“Credit access is only one side of lending. The bigger challenge for many lenders is what happens after disbursement.
“Vida AI helps lenders make smarter decisions across the credit lifecycle, from approval to repayment and recovery,” the chief executive of VeendHQ, Mr Olufemi Olanipekun, stated.
VeendHQ said Vida AI’s recovery workflow enables lenders to upload overdue loan records, verify borrower information, assess repayment capacity, and trigger automated recovery actions. This gives lenders better visibility after disbursement and allows recovery teams to prioritise overdue portfolios more effectively.
“If lenders cannot recover efficiently, they become more conservative with lending. That affects consumers, small businesses, and the wider credit market. Better recovery infrastructure gives lenders more confidence to lend, manage risk, and keep credit flowing,” Mr Olanipekun added.
VeendHQ, a Nigerian fintech company building digital credit infrastructure, developed Vida AI as an AI -powered platform for lenders, merchants, and financial institutions. The platform supports credit assessment, identity verification, repayment collections, and loan management workflows.
With the recovery pilot, the company is positioning Vida AI beyond loan origination, as a tool for lenders seeking to improve repayment performance and manage overdue portfolios more efficiently.
By Modupe Gbadeyanka
The sum of N17.97 million has been won by at least 273 customers of Wema Bank Plc through its 5 for 5 Rewards campaign launched on May 2, 2026.
At the activation of the promo at Ikeja City Mall, Lagos, 81 customers were given N81,000 each, resulting in N6.56 million in rewards on launch day. Since then, the campaign has continued to reward customers through daily and monthly draws, with an additional 192 winners emerging within the first month.
Across the Youth segment, 37 students have received rewards worth N4.4 million, including 20 students who got N50,000 PocketMoni rewards and 17 university students who received N200,000 each in Tuition Support.
The Women segment also recorded strong participation, with 12 customers receiving N150,000 each through the #SelfCare category, while the Mass Market segment recorded the highest number of winners.
Within the first month, 120 customers received daily cash rewards, and 23 customers won N200,000 each in the monthly draw, bringing total rewards in the category to N5.2 million.
These have demonstrated the strong early impact of its refreshed customer rewards platform and reinforced its commitment to rewarding everyday banking.
“At Wema Bank, we believe loyalty should be rewarded in ways that are meaningful, transparent and accessible.
“The response to Season 5 of the 5 for 5 Rewards campaign has been encouraging, and seeing hundreds of customers benefit within just one month reinforces our belief that everyday banking should create everyday opportunities,” the chief executive of Wema Bank, Mr Moruf Oseni, stated.
“Beyond rewarding transactions, we are encouraging positive financial habits while delivering real value to our customers.
“This is only the beginning. With more reward categories, more winners and more opportunities still ahead, we remain committed to creating meaningful impact for our customers and ensuring more Nigerians experience the value of banking with Wema,” he added.
Customers can participate by opening or reactivating a Wema Bank account, funding it with a minimum of N5,000, maintaining an average monthly balance of N5,000, and completing at least five transactions every month using the ALAT app, Wema or ALAT cards, or *945#.
With over N170 million earmarked for rewards between May and December 2026, thousands more customers are expected to benefit as the campaign continues, reaffirming Wema Bank’s commitment to rewarding loyalty, promoting positive financial behaviour and delivering value beyond banking.
By Aduragbemi Omiyale
The N3.97 billion commercial paper issuance of AG Mortgage Bank Plc will close on Thursday, June 18, 2026.
The sale of the debt instrument by the real estate lender commenced on Wednesday, June 10, 2026.
It is under the N5 billion commercial paper issuance programme of the lending firm aimed to support its short-term working capital and funding requirements.
The company is selling the papers in two series, with Series 2 offered at a discounted rate of 19.2895 per cent for 270 days, and Series 3 at a discounted rate of 19.3651 per cent for 364 days.
The minimum subscription is N5 million, and subsequent additions of N1 million.
AG Mortgage Bank is a leading primary mortgage bank in Nigeria with over two decades of experience in providing affordable mortgage financing and housing finance solutions.
The bank has grown its asset base to over N33 billion and remains a key participant in major housing intervention programmes, including the National Housing Fund Scheme and other government-backed mortgage initiatives.
Supported by a diversified product offering, strong institutional credibility, and an experienced management team, AG Mortgage Bank continues to deliver solid financial performance.
For FY 2025, interest income increased by 28.1 per cent to N3.65 billion, while profit after tax rose by 130.0 per cent to N1.05 billion, reflecting strong earnings growth, operational efficiency, and prudent risk management.
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