close
Tuesday, October 4, 2022

Falana writes CBN over controversial plot to sell Polaris Bank for N40 billion

CBN governor Godwin Emefiele secured a presidential approval to sell the bank to Auwal Lawan Abdullahi, a son-in-law to Ibrahim Babangida.

• October 3, 2022
Femi Falana, Polaris Bank, and Godwin Emefiele
Femi Falana, Polaris Bank, and Godwin Emefiele

Human rights lawyer and activist Femi Falana has asked the Central Bank of Nigeria to provide information detailing the proposed N40 billion sale of Polaris Bank Ltd., a bank that was rescued with N1.2 trillion taxpayers’ funds since its 2018 nationalisation.

Peoples Gazette in August exclusively reported that the apex bank was proceeding secretly but firmly to sell Polaris Bank Ltd to an obscure businessman for roughly N40 billion according to multiple sources familiar with the matter.

Citing The Gazette report, Mr Falana wrote the CBN on August 25 to demand details of the shady transaction or risk a lawsuit at a Federal High Court.

Mr Falana had based his request on the provisions of the Freedom of Information Act 2011, a law that mandates the CBN to accede to the demand within seven days of receiving the letter.

“We have however read in the People’s Gazette online medium that the Central Bank has concluded arrangements to sell the Polaris Bank at a ridiculous sum of N40 Billion,” wrote the human rights lawyer. “In view of the foregoing, kindly furnish us with detailed information on the proposed sale of the Polaris Bank Nigeria Limited including the name of the lucky buyer.”

The CBN, not denying the sale, acknowledged the receipt of Mr Falana’s letter and responded that the “information being sought, where available, will be communicated to you in due course.”

The response was signed by Aminu Mohammed, director of the apex bank on September 1. 

Godwin Emefiele, CBN governor has been fingered as the key negotiator scheming with others to close the deal in a hurry for N40 billion, rather than publicly list the bank for sale and squeeze more for Nigerians.

Sources close to The Gazette had disclosed Mr Emefiele had secured a presidential approval to sell the bank to Auwal Lawan Abdullahi, a son-in-law to Ibrahim Babangida, who holds the Sarkin Sudan Gombe traditional title from the northeastern state, despite his limited credentials in banking and finance.

“Emefiele and others convinced the president to grant approval for the sale and they’re now moving to crush anyone standing in the way,” a source briefed on the matter said. “They don’t seem to care that they could do more than sell the bank for more than the roughly N40 billion offer they currently have from their secret talks.”

The sale, if it goes through, could see Nigerian taxpayers lose around 97 per cent of state investment in Polaris. As of December 2020, AMCON investment in the bank stood at N848 billion, per company filings, with insiders saying an additional N350 billion was poured in between January 2021 and July 2022.

We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.

More from Peoples Gazette

Father Ejikeme Mbaka on Adoration Centre ground, Enugu

Enugu

Mbaka proposed interim administration for Adoration Ministry: Catholic Church

The church said this was to allow the priest time away in solitude, in order to listen to what the Spirit of God has to tell him.

Dave Umahi and Bola Tinubu cycling

Politics

Nigerians “are so petty” to question Tinubu’s health status: Umahi

To those questioning Mr Tinubu’s health status, the Ebonyi governor said, “Asiwaju has life and he doesn’t need to show any proof of life”.

Cattle truck

Agriculture

Insecurity: Cattle dealers ban trucks from conveying humans with cattle

Truck drivers will now be issued a list containing information about the goods being transported, its owner and intended destination.

Enugu Commissioner of Police, Ahmed Ammani

Enugu

Enugu CP charges politicians on peaceful campaign ahead of 2023 polls

Political parties were also asked to provide their campaign timetables to the command to aid necessary security actions.

Muhammad Sadiq-Wali

Kano

2023: PDP guber candidate vows to restore Kano’s lost glory if elected

If elected, Muhammad Sadiq-Wali said his administration will promote small-scale businesses and local/indigenous industrialisation.

Court room

Rights

Court remands Ondo man for allegedly stabbing co-tenant to death

The victim was killed while trying to separate the defendant and his brother during a fight.