By Chinwendu Obienyi
The Central Bank of Nigeria (CBN) has dismissed claims circulating on social media that Polaris Bank Limited is facing liquidation, assuring depositors, investors, and stakeholders that the Nigerian banking system remains resilient and sound following its recent recapitalisation exercise.
The apex bank, in a statement posted on its official X (formerly Twitter) handle on Thursday, described the viral posts as “fake” and “misleading,” warning the public against spreading unverified information capable of undermining confidence in the financial system.
There had been rumours suggesting that Polaris Bank had failed to meet the CBN’s revised capital requirements and was facing imminent liquidation, with the Nigeria Deposit Insurance Corporation (NDIC) allegedly preparing to take over the process.
The same post also claimed that industrialist Razaq Okoya, founder of the Eleganza Group, had submitted a bid to acquire the bank, pending regulatory and shareholder approval.
But in a swift response, the CBN dismissed all such claims as baseless, clarifying that the current regulatory environment reflects a robust and well-capitalised sector following the successful completion of the 24-month recapitalisation programme.
CBN in its post which includes a screenshot of the claim and was tagged as false, underscoring the regulator’s commitment to preserving market stability and public trust, said, “This content is fake. Let the public be guided. The Nigerian Banking System is safe and secure,” the CBN stated.
On April 1, the apex bank confirmed that 33 commercial banks across various licence categories met the new minimum capital thresholds, collectively raising N4.65 trillion to strengthen balance sheets and enhance resilience against macroeconomic shocks.
According to the bank, the recapitalisation drive not only lifted capital adequacy ratios above international Basel standards but also positioned Nigerian banks to compete globally while supporting domestic economic growth through improved credit capacity.
Furthermore, a regulatory source at the apex bank, ascertained that the Nigerian banking system remains strong, adequately capitalised, and resilient while adding that the CBN has instituted appropriate monitoring to ensure compliance, and any outstanding issues are being addressed through existing regulatory and judicial channels.
Polaris Bank has faced governance and regulatory scrutiny in recent years. In January 2024, the CBN dissolved the boards and management of Polaris, Union Bank, and Keystone Bank as part of ongoing efforts to reinforce risk management and oversight.
The bank also drew attention in 2022 when lawmakers queried the process leading to its acquisition, amid reports that a competing bidder had offered a higher purchase price. Subsequently, the House of Representatives directed the central bank to suspend the sale pending further investigation.
Despite these controversies, there is no official record from the CBN or NDIC indicating that Polaris Bank is under liquidation or licence suspension. Stakeholders say the regulator’s latest clarification should calm public concern and discourage speculative narratives that can trigger unnecessary apprehension in the banking sector.
“The recapitalisation exercise has significantly improved the system’s stability,” said an economist familiar with regulatory developments. “False claims about liquidation undermine confidence, but the CBN’s quick response shows its determination to maintain order and transparency.”
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