CBN Loses N1.15 Trillion As Strategic Capital Acquires Polaris Bank For Cheap

Strategic Capital Investment Limited (SCIL) has acquired Polaris Bank from Asset Management Company of Nigeria (AMCON) and Central Bank of Nigeria (CBN).

The central bank and debt collector agency sold Polaris Bank to Strategic Capital Investment Limited at the cost of N50 billion, according to several media reports.

Director of corporate communications department of the CBN, Osita Nwanisobi, confirmed the sale on Thursday in response to question via call.

Strategic Capital Investment Limited acquired 100 per cent stake in Polaris Bank after mixed reactions trailed the bidding process.

Previous reports had it that the CBN planned to sell Polaris Bank at the cost of N40 billion, but it was eventually sold at N50 billion.

This is, however, lower than the N1.2 trillion that the central bank and AMCON had invested in Polaris Bank to revive it after the firm’s license, while it was still known Skye Bank, was revoked and liquidated.

Prime Business Africa understands that the deal means CBN and AMCON sold Polaris Bank at a loss of N1.15 billion, a situation the House of Representatives was trying to avoid which led to the initial directive from the lawmakers that the central bank should halt the sales.

It was gathered that 35 companies were invited for the bid, the list was trimmed down to 15, out of which seven were later chosen before Polaris Bank was sold to Strategic Capital Investment Limited.

Source: PrimeBusiness