After the Nigerian elections next month, the Asset Management Corporation of Nigeria (AMCON) will proceed to seek new investors to take over Polaris Bank Limited. The institution noted that it is taking stock of the bank’s assets ahead of a sale.
Mr. Jude Nwauzor, Spokesman for AMCON said “election season has slowed down things. We would advertise for expressions of interest from investors after elections and commence the sale process”.
Some of Nigeria’s banks have faced tough times since low oil prices put pressure on their business of lending to the oil and gas industry. This is the case for Polaris Bank, which was set up last year to take over the assets of Skye Bank which collapsed and had its operating licence revoked by the Central Bank of Nigeria.
Currently, Polaris Bank is to be sold to interested investors. AMCON has previously sold three other nationalised banks. The AMCON spokesman said the corporation was seeking to recover debts owed to Polaris that were non-performing and had asked for proposals on repayment.
In 2010, AMCON was set up to take on non-performing loans from banks. It was an initiative implemented to resolve a financial crisis at the time.