Following the sale of Polaris Bank to a new core investor, Strategic Capital Investment Limited (SCIL), by the Central Bank of Nigeria (CBN) at the weekend, analysts have listed their expectations of the bank post-acquisition.
This is even as critical concerns have been raised about the relatively unknown antecedents of the new owner, Auwal Lawal.
It is more so when it turned out that Lawal is the in-law to former Nigerian military president, General Ibrahim Badamosi Babangida (rtd).
While applauding the apex bank for the sale, the experts said they expect the new owner to continue from where the AMCON-led management ended their turn-around of the bank to ensure that it becomes a strong force in the banking industry.
According to them, the purchase of the bank for N50 billion, instead of N25 billion required of a fresh banking license, has shown that, CBN did a good job in finding a valuable buyer for the financial institution.
Accordingly, they urged the banking regulatory body to keep monitoring the activities of the bank under the new owner, and step in if it is being mismanaged.
In an exclusive interview with LEADERSHIP on Sunday, a renowned Economist, Prof Tayo Bello, of Adeleke University, Osun State, said CBN is the custodian of banks, and cannot hold the bridge bank for life; hence, it had to sell when the right buyer came for it.
He said, “CBN is the custodian of banks. They cannot hold the bridge bank for life, hence, when they stabilise the bank, they will sell which is what the CBN did in Polaris Bank. People should not raise too much concern about its over N1trillion debt as CBN has been magnanimous enough to give moratorium of 25 years to repay the debt.”
Bello stressed that it was better to sell the bank than allow it to go under, which could distabilise the banking system.
“So, its a right step in the right order. We should not also forget that though the investor purchased the bank for N50 billion, its assets far outweigh the amount paid, hence, there are alternative to settle some of the debt,” he pointed out.
Urging stakeholders to give the new management some time to reposition the bank, he said with M.K Ahmed, who was in the previous management and now chairing the new management, there is going to be a continuation in the direction in which the bank goes to stamp its footprint on the sand of time in the banking industry.
“The new management has a greater role to play in the future of the bank, hence, CBN should still be there to give close monitoring to the bank to ensure that the bank, under the new management, does not derail from its initial purpose, mission and responsibilities,” he emphasised.
Earlier, a business analyst, Chika Mbonu who spoke on Arise TV, commended the management of the bank for leading a successful transition, just as he urged the core investors (SCIL) to take the financial institution to the next level.
He said, “There was quite a protest over a rumour that the bank was sold for a paltry amount. However, we are happy that the CBN is now out to announce the name of the investors that won the bid, N50billion purchase consideration in addition to the N1.3 trillion that the CBN puts in to resuscitate the bank, which the core investors will take over that loan and pay it back. It is a better deal than other project handled by AMCON and NDIC.”
An Independent analyst, Ola Aina, said the divestment has been long overdue and it could only get better now that new owners have taken over 100 per cen, hence, looking forward to a new board and management unveiled to see their growth plan.
Meanwhile, the new owner, Auwal Lawal, is the in-law to the former Nigerian military president, General Babangida (rtd). He is married to Halima, the second daughter and last child of the former Nigerian leader.
A renowned Nigerian businessman, entrepreneur and a philanthropist, Lawal holds the traditional chieftain title of “Sarkin Sudan of Gombe.’
He is also the chairman and CEO of Nice Corporate Services Limited registered with the Corporate Affairs Commission(CAC), Nigeria, since 2004. The company deals in real estate development, commodities trading, and supply of agricultural machinery and fertilizer.
In the same vein, the new owner announced a new board that is expected to take the bank to a new height, grow its shareholders’ base and improve the its profitability.
The new board will be led by the existing chairman, M.K Ahmad, who will be joined will be joined on the board by 6 non-executive directors and 3 executive directors. They are to bring extensive experience in the banking and wider financial services sector in Nigeria and internationally, as well as expertise in corporate governance, human resource management, law and regulation to manage the operation of the bank.
The incoming board are Alhaji MK Ahmad as chairman; Mr Abubakar Danlami Suleiman as non-executive director; Ms Salma Mohammed, a non-executive director; Mr Adeleke Alex Adedipe as non-executive director; Mr Ahmed Almustapha, a non-executive director; Mr Francesco Cuzzocrea, another non-executive director; Mrs Olabisi Olubunmi Odunowo as non-executive director; Mr Adekunle Sonola, an executive director who will also become the managing director/CEO; Mr Abdullahi S Mohammed, an executive director and Mr Segun Opeke as an executive director.