The Central Bank of Nigeria, CBN, has revealed that the acquisition of Polaris Bank by Strategic Capital Investment Limited (SCIL) is worth N1.35 trillion.
The CBN stated that the acquisition fee being N50 billion means the CBN sold the bank at a loss of N1.15 trillion, considering that the CBN and Asset Management Corporation of Nigeria, AMCON, had invested as much as N1.21 trillion to rescue Skye Bank (now known as Polaris Bank) when it liquidated in 2018.
The CBN stated that “invitations to submit proposals were sent to 25 pre-qualified interested parties, out of which three (3) parties eventually submitted final purchase proposals following technical evaluation.”
Strategic Capital Investment Limited emerged the successful buyer through submitted bids.
Lawan Auwal Abdullahi is the investor behind Strategic Capital Investment Limited, SCIL, the firm which acquired Polaris Bank from government’s debt recovery agency, Asset Management Corporation of Nigeria (AMCON).
It was gathered that Lawan is the businessman that acquired Polaris Bank. While Strategic Capital Investment Limited, SCIL, was recently registered in April 2022, just six months ago.
The investor has two other companies, Ponglomerape Limited and Nice Corporate Services Limited.
While little is known about Lawan, the businessman has investments in various sectors of Nigeria’s economy, including real estate, agriculture, trade, as well as the Oil and Gas industry.
Although Lawan has been in the line of business for over a decade, he only came into spotlight during his wedding to Halima Babangida, the second daughter and last child of former military dictator, General Ibrahim Badamosi Babangida, IBB, in May 2017.
The wedding grabbed media headlines due to the number of private jets used by businessmen and guests who attended the wedding. It was gathered that about 30 private jets landed in Minna Airport, Niger State for the wedding.
CBN’s Director of Corporate Communications, Osita Nwanisobi, said a full repayment of N1.305 trillion, being the considered bonds injected to resuscitate the bank, is expected from Strategic Capital Investment Limited as part of the terms of agreement.
The financial regulator said the acquisition enables the apex bank to recover the funds invested in Polaris Bank in the last five years.
“This process has provided the CBN with an unprecedented opportunity to recover its intervention funds in full and promote financial stability and inclusive growth.
Nwanisobi explained that CBN and AMCON representatives, who were grouped into Divestment Committee, coordinated the acquisition of Polaris Bank, with legal advice from attorneys and financial consultants.