Reps direct CBN to suspend sale of Polaris Bank


The House of Representatives has directed the Central Bank of Nigeria (CBN) to suspend the sale of Polaris Bank Plc with immediate effect.

The resolution followed the adoption of a motion of urgent public importance by Rep. Henry Nwauba (APGA-Imo) at plenary on Wednesday.

The House said the suspension should be until the CBN deposit Insurance Corporation and the Asset Management Corporation of Nigeria concluded all processes for open, transparent, and competitive bid process.

Nwauba had said he read that the CBN was proposing the sale of Polaris Bank for N40 billion.

He said that there was need to ensure that the divestment in the bank did not jeopardise the core reason for the CBN intervention in the bank in the overall public interest.

He added that the divestment should be done most transparently following the due process.

He alleged that the proposed sale was shrouded in secrecy.

The House therefore set up an ad hoc committee to within 20 days review the total outlay by the Federal Government of Nigeria in Polaris Bank and account for the entire financial input in the bank by the Federal Government.

The House said this should be through CBN, NDIC and AMCON to determine whether the conditions and terms of sale were likely to ensure positive return on public funds thus far committed to the bank, whether as bailout funds or other investments.

The House urged the committee to take action necessary to ensure that the public funds committed to Polaris Bank are appropriately accounted for.