The CBN has failed to give details on whether it has decided to sell Polaris Bank. The magazine had earlier reported the alleged secret sale of the commercial bank to a businessman related to President Muhammadu Buhari by the Godwin Emefiele-led apex bank.
Even though the management of Polaris Bank dismissed the report, Femi Falana, a human rights lawyer in a letter dated August 25, 2022, demanded that the CBN make a public pronouncement on the issue.
Failure to do that, the Senior Advocate of Nigeria, SAN, said he will drag the CBN to court.
Part of Falana’s letter reads: “We commend the Central Bank of Nigeria for bailing out Polaris Bank Nigeria Limited with the sum of N1.2 trillion,” the letter reads.
“We have however read in the People’s Gazette online medium that the Central Bank has concluded arrangements to sell the Polaris Bank at a ridiculous sum of N40 billion.
“In view of the foregoing, kindly furnish us with detailed information on the proposed sale of the Polaris Bank Nigeria Limited including the name of the lucky buyer.
“As this request is made pursuant to the provisions of the Freedom of Information Act 2011, you are required to accede to our request within 7 days of the receipt of this letter.”
“Take notice that if you fail or refuse to furnish us with the requested information we shall not to pray the Federal High Court to compel you to accede to our request.”
Responding to Falana’s letter, the CBN said in a letter signed by Aminu Mohammed, for Director/ Secretary to the Board, that it will only make information on the issue available at the appropriate time.
“We write to acknowledge the receipt of your letter dated the 25th of August 2022 and received on the 1st of September 2022 on the above subject and wish to inform you that the information being sought, where available, will be communicated to you in due course,” the apex bank responded,” the bank said in the letter dated September 21, 2022.
Polaris Bank had on August 6 denied that the bank has been sold, describing the report as a figment of the imagination of those peddling the rumour.
The bank said, “Our attention has been drawn to an online report on the purported sale of Polaris Bank Limited. This publication is speculative, deliberately intended to create panic and should be disregarded by the banking public.
“Stakeholders may recall the regulatory intervention in the erstwhile Skye Bank by the CBN and the subsequent injection of capital via the Asset Management Corporation of Nigeria through a bridge bank process, which birthed Polaris Bank in 2018.
“The bank has since stabilised its operations following the intervention; improving its balance sheet, customer base and profitability.”
“Whilst the intention has always been to return the bank to private ownership, such a sale will occur following regulatory approvals with formal notification to all relevant stakeholders.’’
Since the take-over of the former Skye Bank now Polaris Bank by the Asset Management Company of Nigeria, AMCON in 2019, over N1.2 trillion has been spent by the CBN to stabilize it.
Not a few Nigerians were however shocked when it was reported that the CBN has sold the bank for a paltry N40 billion.
