The Central Bank of Nigeria (CBN) has debunked rumours suggesting that Polaris Bank is undergoing liquidation, while affirming that the bank is safe and secure for its customers, investors and depositors.
The apex bank disclosed this in a post on X, assuring the public that the country’s banking system remained stable and secure.
The clarification followed a viral post, claiming that Polaris Bank was facing liquidation for failing to meet the bank’s recapitalisation requirements, and could soon lose its operating licence, with the Nigeria Deposit Insurance Corporation set to take over the process.
It further alleged that the founder of the Eleganza Group, Razaq Okoya, had made a bid to acquire and revive the bank, pending approval from regulators and shareholders.
Sharing a screenshot of a viral claim, however, the apex bank flagged it as “fake content.”
It clarified that the claims did not reflect the current state of the Nigerian banking sector.
“This content is fake. Let the public be guided. The Nigerian banking system is safe and secure,” the bank said.
On April 1, the CBN confirmed that 33 banks successfully met the revised minimum capital requirements under its recapitalisation programme, marking a significant milestone in strengthening the financial system.
A total of N4.65 trillion was raised during the 24-month exercise, pushing capital adequacy ratios across the sector above global Basel benchmarks and enhancing banks’ resilience, according to the apex bank.
However, it noted that “a limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.”
As part of efforts to reinforce oversight and stability in the sector, in January 2024, the CBN dissolved the boards and management of Polaris Bank, alongside Union Bank and Keystone Bank.
In 2022, the bank was also at the centre of controversy following claims that a higher bid was submitted during its sale process than the one eventually accepted.
At the time, reports indicated that the House of Representatives directed the apex bank to suspend the sale.
Again, a Federal High Court in Lagos reportedly reversed the sack of the board and management of Union Bank of Nigeria on March 25.
Responding, while maintaining that the bank’s regulatory status remained unchanged, the CBN stated that it would review the judgment.
An earlier report by The ICIR disclosed that although the March 31st deadline for their recapitalisation was not met, the CBN advised depositors with Union, Keystone, and Polaris banks not to panic about their funds.
The apex bank said the banks were still undergoing judicial and regulatory procedures, while assuring depositors about the safety of their funds.
