The Central Bank of Nigeria has firmly denied widespread reports suggesting that Polaris Bank is undergoing liquidation, describing the information as misleading and inaccurate.
The clarification was issued via a post on X, where the apex bank reassured Nigerians of the continued strength and stability of the country’s financial system. The statement came in response to a viral claim that had raised concerns about the bank’s status.
According to the circulating report, Polaris Bank was allegedly at risk of losing its operating licence after failing to meet the CBN’s recapitalisation requirements. It further claimed that the Nigeria Deposit Insurance Corporation was set to take over the liquidation process.
The rumour also suggested that Razaq Okoya, founder of Eleganza Group, had made a move to acquire and revive the bank, pending regulatory and shareholder approvals.
However, the CBN dismissed the entire claim, sharing a screenshot of the viral post and clearly labeling it as false.
“This content is fake. Let the public be guided. The Nigerian Banking System is Safe and Secure,” the bank said.
The apex bank further explained that the claim does not reflect the true state of the Nigerian banking sector, emphasizing that the system remains resilient.
As part of its ongoing reform efforts, the CBN recently confirmed that 33 banks have successfully met the revised minimum capital requirements under its recapitalisation programme. The exercise, which lasted 24 months, resulted in the mobilisation of N4.65 trillion, significantly strengthening capital adequacy levels across the industry and pushing them above global Basel benchmarks.
While most banks have complied, the regulator 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.”
In a bid to reinforce oversight and maintain stability, the CBN had earlier taken decisive action in January 2024 by dissolving the boards and management of Polaris Bank, as well as Union Bank of Nigeria and Keystone Bank.
Polaris Bank has also faced scrutiny in the past, particularly in 2022, when questions were raised about its sale process. Reports at the time indicated that a higher bid may have been overlooked, prompting the House of Representatives to intervene and call for a suspension of the transaction.
More recently, developments in the sector included a ruling by a Federal High Court in Lagos on March 25, which reportedly reversed the dissolution of the board and management of Union Bank of Nigeria.
In response, the CBN maintained that the bank’s regulatory status remains unchanged and indicated that it would review the judgment.
Overall, the apex bank urged the public to rely on verified information and avoid spreading unconfirmed reports that could undermine confidence in the financial system.
