The Central Bank of Nigeria (CBN) has refuted claims circulating in some circles regarding a higher offer made during the sale of Polaris Bank. The bank emphasized that the divestment process adhered to established procedures and best practices. In October of the previous year, the CBN announced the sale of Polaris Bank to Strategic Capital Investment Limited (SCIL) for a total consideration of N1.355 trillion.
In a statement released on Wednesday, CBN’s Director of Corporate Communications, Osita Nwanisobi, clarified that one of the bidders, Fairview Acquisition Partners, had submitted an offer of N1.2 trillion. This bid significantly undervalued Polaris Bank’s existing indebtedness of N1.305 trillion to the federal government, which would have resulted in a substantial loss for the government. Consequently, this offer was not accepted.
In contrast, the CBN accepted SCIL’s offer because it was more advantageous for the country. The CBN stated, “SCIL’s offer was the most competitive and provided taxpayers and the Federal Government with more than full recovery of its intervention cost. By the sale, the CBN and the Nation achieved a successful, value-driven resolution of a strategic financial institution.”
Comments are closed for this story.