The Central Bank of Nigeria, CBN, has taken over one of the nation’s commercial banks, Skye Bank pending when a buyer is found. This was after it dissolved the Board of the financial institution.

New Telegraph reports that the CBN took the decision as Skye Bank has been deemed ‘unhealthy’ and is a measure to prevent a total collapse of the bank.

The bank is thought to have an estimated non-performing loan portfolio of N700bn, much of which is due to an overexposure in the oil and gas sector. All the directors and executives at the bank except three executives who joined the bank last year have been shown the door.

Managing Director of Skye Bank, Timothy Oguntayo has already dropped his resignation. The bank would be taken over by CBN and possibly handed over to the Asset Management Company of Nigeria, AMCON.

The newspaper reports that AMCON would buy up the bank’s toxic loan and then make efforts to recover them from the bank’s chronic debtors.