Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), has said the CBN invested N800 billion in the recapitalisation of now defunct Skye Bank.

While answering questions from journalists at the end of the monthly policy committee meeting in Abuja on Tuesday, in the country’s capital, Abuja, Emefiele also noted that the choice of the name 'Polaris' was for legal reasons and not because it sounded "sexy".

The CBN invested about N800 billion in the bank, he noted, and as such, the bank’s name had to change in order to reflect the new ownership structure.

In consultation with the Nigerian Deposit Insurance Corporation (NDIC), a bridge bank — Polaris — was set-up for the recapitalisation, as the shareholders of Skye Bank were not able to raise the needed funds to keep the bank afloat.

Announcing the revoking of Skye Bank's licence, Emefiele had said: “As a responsible and responsive regulator and in consultation with the Nigerian Deposit Insurance Corporation (NDIC), we have decided to establish a bridge bank, Polaris Bank, to assume the assets and liabilities of Skye Bank.

"The strategy is for the Asset Management Company of Nigeria (AMCON) to capitalise the Bridge Bank and begin the process of sourcing investors to buy out AMCON. By this decision, the licence of the defunct Skye Bank is hereby revoked."

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