Polaris bank: Court strikes out suit against CBN

Justice Lewis Allagoa of a Federal High Court in Lagos, on Wednesday, dismissed a suit filed by rights activist, Chief Femi Falana, SAN, challenging a purported sale of Polaris Bank.

Justice Allagoa dismissed the suit following an application by the learned silk, seeking to discontinue the same before the court.

The News Agency of Nigeria reported that Falana had instituted the action in suit FHC/l/CS/87c/23, against the Central Bank of Nigeria, CBN and Polaris Bank Nigeria Ltd.

In his originating summons, the plaintiff had asked the court to determine, “Whether by the provisions of section 42(2) of the Banks and Other Financial Institutions Act 2020, and Public Procurement Act, 2007, the CBN could validly sell Polaris bank for N50 billion having earlier revitalized same for N1.3 trillion.

Falana had consequently sought a declaration, that the purported sale of Polaris Bank by CBN on Oct. 19, 2022, is illegal and violates the Public Procurement Act, 2007.

He avers that the purported sale also violates the provisions of the Banks and Other Related Institutions Act 2020.

The plaintiff had consequently sought an order, setting aside the sale of Polaris Bank.

When the case was called on Wednesday, Falana announced appearance for himself as both plaintiff and counsel.

Augustine Okafor appeared for the first defendant while Mr Olabisi Makanjuola appeared for the second defendant.

Falana then informed the court that he sought to withdraw and discontinue the suit following a takeover of Polaris Bank by the federal government.

According to him, the federal government, having found that the sale of Polaris was illegal, had decided to take over the bank.

He then sought to withdraw the suit on that grounds.