CBN fines Skye Bank N4bn over TSA

The Central Bank of Nigeria, CBN, has imposed a fine of N4bn on Skye Bank Plc for allegedly failing to render appropriate returns on accounts of some government institutions and agencies.

This is contained in a statement by Skye Bank to the Nigerian Stock Exchange.

The bank noted that the fine imposed by the apex bank was misdirected, since it did not conceal any information of the accounts from the CBN.

Skye Bank said significant portion of the money for which penalty was applied belonged to the state-owned energy company NNPC Pension Funds and National Assembly Legislative Aides account balances.

The bank explained that the sum of N40bn for which the fine was imposed came from the NNPC account balances it (NNPC) had said should be exempted from the Treasury Single Account, TSA, operations.

Skye Bank noted that it received a communication from the NNPC forwarding a letter from the Accountant General of the Federation on the treatment of NNPC funds.

It said: "By the communication, the bank is advised that an 18 business day window had been granted by the Vice-President, Yemi Osinbajo, within which a plan for the orderly withdrawal of the NNPC funds will be implemented."

The statement said Skye Bank had commenced engagement with the apex bank with a view to bringing the issues to the attention of the banking sector regulator and seeking a review of the penalty.

It will be recalled that CBN recently sanctioned First Bank N1.87bn for refusal to remit about N37.55bn belonging to the state-owned energy company.

It also fined UBA N2.94bn for concealing a portion of the energy corporation’s fund totalling N58.84bn.

UBA was sanctioned for also refusing to remit the deposit of the energy firm into the TSA as of when directed.