On January 5, 2023, the Central Bank of Nigeria (CBN) issued a statement through its Director of Corporate Communications, Mr. Osita Nwanisobi, asserting that the sale of Polaris Bank to Strategic Capital Investment Limited (SCIL) followed due process. This declaration, reported by Emma Ujah, Abuja Bureau Chief, aims to counter claims of irregularities and reaffirm the CBN’s commitment to a transparent financial system, a stance that remains relevant as of August 27, 2025.
Addressing Allegations of Impropriety
The CBN’s statement refutes assertions that potential investors were unfairly excluded, specifically addressing claims by an online publication about Fairview Acquisition Partners. The bank clarified that no higher purchase offer was made, noting that Fairview’s indicative offer of N1.2 trillion for two banks, including Polaris, was insufficient. This amount significantly discounted the N1.305 trillion debt Polaris owed to the Asset Management Corporation of Nigeria (AMCON), potentially leading to a loss for the Federal Government. Despite being invited, along with 24 other parties, to participate via a Non-Disclosure Agreement (NDA), Fairview failed to execute or return it, thus not submitting a binding offer.
The divestment process was overseen by a Divestment Committee comprising senior representatives from AMCON and CBN, supported by reputable legal and financial advisors. The CBN emphasized that the process and decision received necessary board and regulatory approvals, adhering to relevant laws and global best practices for bank resolutions. A rigorous evaluation of purchase proposals, including assessments of promoters’ fitness, offer prices, funding structures, and growth plans, underpinned the selection of SCIL as the preferred purchaser.
SCIL’s Competitive Offer
SCIL’s proposal stood out, offering an immediate upfront payment of N50 billion and assuming full responsibility for the N1.305 trillion AMCON debt, totaling a purchase consideration of N1.355 trillion. This offer exceeded Polaris Bank’s core valuation and reserve price, providing taxpayers and the government with more than full recovery of intervention costs. The CBN hailed this as a successful, value-driven resolution of a strategic financial institution, marking a significant achievement in stabilizing Polaris Bank.
Response to Misrepresentation
The CBN criticized the timing and intent of the online publication, labeling its claims as misleading and designed to undermine the divestment’s credibility. Such narratives, the bank warned, could jeopardize Polaris Bank’s stability and the progress of monetary authorities. The statement reiterated that the decision was an institutional one, coordinated with AMCON and approved by their respective leadership and boards, reinforcing the CBN’s resolve to maintain a safe and sound financial system in Nigeria.
Ongoing Relevance
As of August 27, 2025, this clarification continues to hold weight amid discussions on financial restructuring and bank stability in Nigeria. The CBN’s defense of the Polaris Bank sale reflects its ongoing efforts to address public scrutiny and ensure confidence in its regulatory framework, a critical factor in the nation’s economic landscape.
