Finance

Polaris Bank not sold, management debunks fake news

Published

2 years ago

August 5, 2022

The management of Polaris Bank Limited has debunked a fake news report claiming that the bank has been sold to an in-law of former military president, Ibrahim Babangida.

In a statement on Friday, the bank described the report as speculative and deliberately intended to create panic.

It urged the public to disregarded it.

“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 (AMCON) 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 would occur following regulatory approvals with formal notification to all relevant stakeholders.”

The Bank is committed to ensuring timely communication to the public in such an event.”

“The Board and Management hereby reassure its customers, staff and the general public that Polaris Bank remains a stable, strong and credible financial institution, positioned to deliver sustainable value to all its stakeholders.”

In a report on 2 August, an online news platform claimed that the Central Bank of Nigeria is proceeding secretly but firmly to sell the bank to Babangida’s in-law, Auwal Lawan Abdullah for roughly N40 billion.

The report queried the planned sale as it claimed the CBN had invested N1.2 trillion on it, since its 2018 nationalisation.

CBN Governor Godwin Emefiele has already received a presidential approval to advance the sale, with public disclosure due any time soon unless backdoor objections grow stronger, the report claimed.