Court dismisses Falana’s suit against CBN on Polaris Bank sale

A Federal High Court sitting in Lagos has dismissed a suit filed by human rights lawyer, Femi Falana (SAN), challenging a purported sale of Polaris Bank by the Central Bank of Nigeria (CBN).

The presiding judge, Justice Lewis Allagoa, on Wednesday, January 24, 2024, dismissed the suit following an application by the lawyer, seeking to discontinue same before the court.

Falana had instituted the action in suit FHC/l/CS/87c/23, against the Central Bank of Nigeria (CBN) and Polaris Bank Nigeria Limited.

In his originating summons, the plaintiff asked the court to determine “Whether by the provisiins 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.”

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Falana also sought a declaration that the purported sale of Polaris bank by CBN on October 19, 2022, is illegal and violates the Public Procurement Act, 2007.

He said the sale also violated the provisions of Banks and Other Related Institutions Act 2020.

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

When the case was called on Wednesday, Falana informed the court that he seeks to withdraw and discontinue the suit following a take over of Polaris bank by the federal government.

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

Justice Allagoa consequently dismissed the suit but rescinded the cost previously awarded against the defendant.

The judge, therefore, adjourned the matter until February 7.

The Star