The Central Bank of Nigeria has debunked rumours suggesting that Polaris Bank is undergoing liquidation, assuring the public that the country’s banking system remains stable and secure.
The apex bank disclosed this in a post on X, where it shared a screenshot of a viral claim and flagged it as false.
It clarified that the claims, suggesting Polaris Bank had failed to meet recapitalisation requirements and was set for liquidation, are entirely false and do not reflect the current state of the Nigerian banking sector.
What they are saying
The viral post had claimed that Polaris Bank was facing liquidation for failing to meet the Central 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 billionaire industrialist Razaq Okoya, founder of the Eleganza Group, had made a bid to acquire and revive the bank, pending approval from regulators and shareholders.
However, in its response, the central bank dismissed the claims, labelling the content as false and misleading.
- “This content is fake. Let the public be guided. The Nigerian Banking System is Safe and Secure,” the bank said.
Backstory
On April 1, the Central Bank of Nigeria confirmed that 33 banks successfully met the revised minimum capital requirements under its recapitalisation programme, marking a significant milestone in strengthening the financial system.
According to the apex bank, 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.
- 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.”
What you should know
Polaris Bank has faced a number of regulatory and governance challenges in recent years.
Recall that in January 2024, the Central Bank dissolved the boards and management of Polaris Bank, alongside Union Bank and Keystone Bank, as part of efforts to reinforce oversight and stability in the sector.
The bank was also at the centre of controversy in 2022 following claims that a higher bid was submitted during its sale process than the one eventually accepted. Reports at the time indicated that the House of Representatives directed the apex bank to suspend the sale.
More recently, on March 25, a Federal High Court in Lagos reportedly reversed the sack of the board and management of Union Bank of Nigeria.
In response, the CBN said it would review the judgment while maintaining that the bank’s regulatory status remains unchanged.
