Polaris Bank: Another Nigerian Bank Up For Sale by AMCON

After the acquisition of Diamond Bank by Access Bank a few weeks ago, Nigerian Banks seems to be hit hard by the economic recession.

The Asset Management Corporation of Nigeria (AMCON) says they will sale Polaris Bank once 2019 General Elections are over.

Jude Nwauzor, AMCON spokesman said

“The election season has slowed down things. We would advertise for expressions of interest from investors after elections and commence the sale process”.

Polaris Bank was established as a Bridge Bank in Septemeber 2018 after the Central Bank Of Nigeria Governor Godwin Emefiele announced the revoking of the operational license of defunct Skye Bank.

It was established to assume the assets and liabilities of the Skye Bank. The CBN invested about N800billion into Polaris Bank which caused the Bank name to change from Bridge Bank to Polaris Bank so as to reflect the name of the new ownership.

Speaking about the revoking of Skye Bank license, Emefiele said

“As a responsible and responsive regulator and in consultation with the Nigerian Deposit Insurance Corporation (NDIC), we have decided to establish a bridge bank, Polaris Bank, to assume the assets and liabilities of Skye Bank. The strategy is for the Asset Management Company of Nigeria (AMCON) to capitalize the Bridge Bank and begin the process of sourcing investors to buy out AMCON. By this decision, the license of the defunct Skye Bank is hereby revoked.”

The Bridge Bank which later became Polaris Bank was necessary after consultation with the Nigerian Deposit Insurance Corporation (NDIC) because Skye Bank shareholders were unable to raise the needed funds to keep it afloat.