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BREAKING: CBN, AMCON announce sale of Polaris Bank
The Central Bank of Nigeria (CBN) and the Asset Management Corporation of Nigeria (AMCON) have formally announced the completion of a Share Purchase Agreement (SPA) for the acquisition of 100 per cent of the equity in Polaris Bank by Strategic Capital Investment Limited (‘SCIL’).
This is even as the House of Representatives on Wednesday okayed the sale of Polaris Bank, noting that the acquisition followed laid down procedure and the relevant presidential approval.
A statement issued by the Director, Corporate Communications Department at the CBN, Osita Nwanisobi, on behalf of the CBN and AMCON, disclosed that SCIL had paid an upfront consideration of N50 billion to acquire 100 per cent of the equity of Polaris Bank and had also accepted the terms of the agreement which include the full repayment of the sum of N1.305 trillion, being the consideration bonds injected.
According to the statement, “the CBN thus received an immediate return for the value it has created in Polaris Bank during the stabilisation period, as well as ensuring that all funds originally provided to support the intervention are recovered.
“The sale was coordinated by a Divestment Committee (the ‘Committee’) comprising representatives of the CBN and AMCON, and advised by legal and financial consultants. The Committee conducted a sale process by ‘private treaty’, as provided in section 34(5) of the AMCON Act to avoid negative speculations, retain value and preserve financial system stability.
“In the process, parties who had formally expressed an interest in acquiring Polaris Bank, subsequent to the CBN intervention in 2018, were invited to submit financial and technical proposals. Invitations to submit proposals were sent to 25 pre-qualified interested parties, out of which three parties eventually submitted final purchase proposals following technical evaluation.
“All submissions were subject to a rigorous transaction process from which SCIL emerged as the preferred bidder having presented the most comprehensive technical/financial purchase proposal as well as the highest rated growth plans for Polaris Bank,” the statement added.
Meanwhile, the CBN Governor, Mr. Godwin Emefiele, was quoted as saying that the sale of the bank “marks the completion of a landmark intervention in a strategic institution in the Nigerian banking sector by the CBN and AMCON.”
He commended the outgoing board and management for their vital role since the bridge bank was established; in stabilising the Bank’s operations, its balance sheet and implementing strong governance structures to address the issues that led to the intervention.
According to the Governor, the process has provided the CBN with an unprecedented opportunity to recover its intervention funds in full and promote financial stability and inclusive growth. He wished SCIL well as they implement growth plans to build the bank from the strong foundations that have been established.”
It will be recalled that Polaris has been operating as a bridge bank since 2018 when the Central Bank of Nigeria intervened to revoke the licence of the former Skye Bank Plc and established Polaris Bank to assume its assets and certain liabilities.
As part of the CBN intervention, consideration bonds with a face value of N898 billion (future value of N1.305 trillion) was injected into the bridge bank through AMCON, to be repaid over a 25-year period. The Bank noted that the actions were taken to prevent the imminent collapse of the bank, enable its stabilisation and recovery, protect depositors’ fund, prevent job losses and preserve systemic financial stability.
Speaking on the acquisition on Wednesday, October 19, 2022, the chairman of the House of Representatives Ad-hoc Committee investigating the sale of Polaris Bank, Hon. Henry Nwawuba, said that the lawmakers during the scrutiny of various documents and extant regulatory process on the sale of the bank, discovered that there were evidences of substantial compliance with the process.
The President of the Senate, Senator Godswill Akpabio has commended Senator Basheer Lado, for redefining the Office of the Special Adviser to the President on Senate Matters, stating that, for the first time in a long while, the office is fully meeting its expectations.
Speaking during his visit to the office of the Special Adviser to the President on Senate Matters accompanied by distinguished senators, Akpabio described the visit as a significant step in strengthening Executive-Legislative relations.
He praised the Special Adviser and his team for maintaining the confidentiality of communications between the President and Senate, and also, ensuring a seamless flow of information. He further emphasized that the office is now more result-oriented.
Additionally, he acknowledged the office’s diligent efforts in tracking all Bills passed by the Senate and assented to by the President, underscoring its critical role in legislative efficiency.
Expressing his satisfaction, Akpabio noted that he and the Senate delegation were proud of the office’s achievements and looked forward to sustaining the existing cordial and productive relationship between the Executive and the Legislature throughout the administration.
In recognition of his exemplary leadership, Senator Lado presented an Award of Excellence to Senator Akpabio.
In his remarks, Senator Lado reaffirmed his commitment to fostering a harmonious working relationship between the Executive and the Legislature. He lauded Akpabio for his unwavering dedication to President Bola Ahmed Tinubu’s Renewed Hope Agenda—defending it with clarity, articulating it with passion, and advancing it through legislative action.
Ahead of the 2025 political party Congresses, Plateau State Chapter of the Labour Party (LP) stakeholders has endorsed the defection of the candidate of the party in the 2023 general elections and the leader of Justice and Rebirth, Barr Gyang Zi SAN, to the All Progressive Congress (APC) with the view to key into the Renewed Hope Agenda of President Bola Tinubu.
They made the call in a communique issued at the end of the enlarge meeting of the stakeholders from Plateau North senatorial zone at the residence of Barr. Gyang Zi in Rayfield Jos.
The communique which was jointly signed by Dr. Ayiki Sati Director General, Justice and Rebirth and
Barr. Samuel Galadima- 2024 Chairmanship candidate of Jos East LGA among others said the call became imperative on the sideline of the leadership tussle at the National Level which violates the core principles and values for the formation of the Party as an alternative for Nigeria for the protection, sustenance of democracy and Social Justice.
They regretted that the leadership tussle has also divided the party into factions leaving party loyalists and supporters in the state of despondency and confusion not knowing where they belong.
Our correspondent reports that the gathering included LP candidates from the 2023/2024 general elections, party executives, and support groups from the six local government areas of the Northern Senatorial District.
Besides, the focus of the discussions was centered on the state of the Labour Party at both national and state levels and the need for political realignment ahead of the 2025 party congresses and conventions.
The stakeholders further frowned at the structural weaknesses in LP and resolved to advise Barr Gyang Zi, to leave the party and join the APC while expressing confidence that the APC would provide him with a platform to advance good governance in the state .
The communique also emphasized the importance of political consultations, particularly with APC leaders at both state and national levels. It called for collaboration with Plateau State APC leaders, including Minister of Humanitarian Affairs Prof. Nentawe Yilwatda Goshwe, Sen. Simon Bako Lalong, Sen. Diket Plang, and other party officials.
According to the communique, supporters of Barr Gyang Zi also pledged to mobilize grassroots support for the APC, stating that their leader’s defection would strengthen the party in the state.
They urged the APC leadership to formally receive Gyang Zi and his supporters into the party, marking their official transition from the Labour Party.
Stakeholders also reiterated the need for inclusive governance, ensuring that youths, women, and less privileged individuals are sidelined in the democratic process and accordingly officially denounced their membership in the Labour Party, declaring their support for the APC.
They assured that all LP structures aligned with Gyang Zi would follow suit, shifting their loyalty to the ruling party in the state and at the National level.
Kogi State Governor, Ahmed Usman Ododo, has extended his heartfelt felicitation to President Bola Ahmed Tinubu, GCFR, on the occasion of his 73rd birthday.
Governor Ododo in statement signed by his special adviser on media, Ismaila Isah described President Tinubu as a statesman whose leadership and dedication to national development continue to inspire hope and progress across Nigeria.
He commended the President’s unwavering commitment to the Renewed Hope Agenda, which is driving economic reforms, strengthening national unity, and advancing the nation’s democratic values.
“On behalf of the government and people of Kogi State, I celebrate Mr President and our father on this special day. Your resilience, visionary leadership, and patriotism have laid a strong foundation for Nigeria’s growth. We deeply appreciate your tireless efforts in repositioning our country for sustainable development,” Governor Ododo stated.
He further reaffirmed his support for President Tinubu’s administration and prayed for continued wisdom, strength, and good health for the President as he leads Nigeria toward greater prosperity, sustainable development, peace and stability.
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