Ahead of Nigeria’s anticipated political transition, with president-elect Bola Tinubu’s inauguration scheduled for 29 May, speculation is mounting over the fate of Polaris Bank Limited, as the incoming helmsman, is said to be gearing up to reverse its ‘controversial sale.

Recall that Polaris Bank was nationalised in September 2018 after AMCON bought its debts. It was known as Skye Bank until the takeover.

Skye Bank had been a product of two mergers and six legacy banks. National Bank and Prudent Bank had first merged during the first banking reform in 1998, when banks’ share capital was raised from N200 million to N500 million.

In 2005, following the consolidation exercise which raised the capital base to N25 billion, National Bank merged with four other banks: Bond Bank Limited, EIB International Bank Plc and Eko International Bank owned by the Lagos State government, Reliance Bank Limited and Co-operative Bank Plc. to form Skye Bank Plc.

Tunde Ayeni, who is said to have had strong interest in the emergent bank, had founded Bond Bank, one of the merging banks in 2000, and by 2010, he had emerged as chairman of Skye Bank board.

The initial years of Ayeni at the helm brought good fortunes to the bank, which was largely the banker of the Lagos State government. But things began to go downhill in 2014 when the bank’s profit before tax plunged to N10.5 billion, and its profit after tax dipped to N9.7 billion as against N18.5 billion reported in 2013.

Things were to go from bad to worse. Year 2014 was to be the last year the bank would release its annual report. By June 2015, the bank had made a loss N40 billion and its capital adequacy had plunged to about 10 per cent, far below acceptable standard of 16 per cent for Systemically Important Banks (SIB) of which Skye was one.

And by December 2015, it had lost over 55 per cent of its share value (from N3.58 in June 2014 to N1.58 in Dec 2015). Its liquidity ratio had gone down to 8 per cent as opposed to minimum regulatory requirement of 30 per cent. Its’ Loan to Deposit Ratio was at 98 per cent, against recommend ratio of 80 percent.

Skye was on a free fall. So bad were the results that it could not file its audited report for 2015. In March 2016, it had sought a 4-week extension to file the report, but it never did. And throughout the year, the market became increasingly distressed. Analyst issued sell recommendations.

The implementation of Treasury Single Account (TSA) delivered another heavy nail on the bank’s coffin. The bank had been heavily dependent on public sector funds. It lost estimated N125 billion to TSA.

Having seen enough, the CBN, in June 2016, wielded the hammer. It sacked the board and took control of the bank’s management. It subsequently named a new board with Muhammad Ahmad as the new chairman and Adetokunbo Abiru as new group managing director, to take over from Timothy Oguntayo.

Abiru, a Tinubu’s loyalist, sources say, was drafted to oversee the bank to protect the president-elect’s interest.

Ayeni, along with Timothy Oguntayo, the bank’s former group managing director (GMD), were subsequently arraigned before Justice Valentine Ashi of the Federal Capital Territory High Court, Apo, by the Economic and Financial Crimes Commission (EFCC), on a four-count charge relating to criminal breach of trust to the tune of N4.6 billion, but the case appeared to have stalled.

And on September 21, 2018, the CBN finally took the decision to revoke the license of Skye Bank. It created a bridge bank to take over its assets and liabilities. That bridge bank became Polaris Bank.

Abiru, however, retired from the bank in August 2020 to pursue his senatorial ambition in a bid to replace Bayo Osinowo, the former lawmaker representing Lagos East Senatorial District who died after a brief illness in June 2020.

On his exit, Abiru was said to have convinced the president-elect to allow Innocent C. Ike, the then executive director, Technology & Services of the bank, believed to be his loyalist to oversee the operations of the bank with the promise that his interest would be protected.


For full details please visit:

https://www.dailyrecordng.com/fresh-crisis-imminent-as-tinubu-may-reverse-controversial-sale-of-polaris-bank/

Rinse and repeat

But it was rumoured that Buhari bought Skye bank ,it is now clear that (Tinubu) Lagos state govt.owns Polaris bank

Don't mind them they keep throwing all sort of dirt on the bank. This new attack now has a political tone attached to it, but we are not ready for that conversation now.by

coputa:
But it was rumoured that Buhari bought Skye bank ,it is now clear that (Tinubu) Lagos state govt.owns Polaris bank

Just a week ago this story about reversing the sale of the bank was cooked up simply because president-elect knows the new bank's chairman, Abiru. On Twitter this morning same rumor about staffs not getting paid and false news about laying off of some managers at Polaris bank which are all false, a neighbour of mine who works at the bank's headquarter completely debunked this news when I shared with him via whatsapp this morning. meanwhile don't forget that just few weeks ago, same Polaris bank won Digital Bank of the Year in 2021 and 2022. Its just obvious that these political mongers will stop at nothing. The bank is now under new management, AMCON is overseeing everything, Polaris bank is doing fine, enough of the witch hunting.

SadiqBabaSani:
Rinse and repeat

If what happened in Sudan does not happen in apc then know that the laws not nature don't work in Nigeria

Useless Emefielelelelele hurriedly sold this former Tinubu's bank in order to witch hunt the President-elect. As fate will have it God has disgraced them all