Setback For CBN, As Reps Stop Godwin Emefiele From Selling Polaris Bank

Members of the House of Representatives have suspended the sale of Polaris Bank by the Central Bank of Nigeria (CBN), following allegations that the apex bank plans to sell the creditor cheaper than the capital invested to resuscitate it.

There were reports that the Godwin Emefiele-led central bank is planning to sell Polaris Bank for N40 billion to an investor in farm business,Auwal Abdullahi, who is the son-in-law of former military dictator, Ibrahim Babangida. 

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The cost of the alleged sale is far below the N1.2 trillion Central Bank of Nigeria (CBN) and Asset Management Company of Nigeria (AMCON) invested in Polaris Bank. 

Recall that the bank was previously known as Skye Bank Plc, before its license was revoked by the Central Bank of Nigeria due to bad corporate governance and non-performing loans. 

Although the Nigeria Deposit Insurance Corporation and Polaris Bank had released separate statements denying any plan to sell the company, but in a new development, during its plenary, the House of Representatives hinted again on an impending sale. 

The lower chamber stated that before any sale is approved, there must be open, transparent, and competitive bid process. Lawmaker, Henry Nwauba, representing APGA party in Imo State, said the investment in the bank should be protected in public interest. 

He stated that if standard procedure is not taken in the sale of Polaris Bank, it could cause public outcry. Nwauba also stated that it could send bad signal to stakeholders in the banking industry, as well as affect foreign investors, depositors, and other banks. 

The House gave a 20-day period to an Ad hoc Committee to scrutinise the capital invested in Polaris Bank by the Federal Government and the roles of the CBN, NDIC, and AMCON, to ensure profitable returns on the investment or bailout funds after the creditor has been sold.