Nigeria’s apex financial regulator, the Central Bank of Nigeria (CBN), has firmly denied circulating claims that Polaris Bank is facing liquidation, emphasizing that the country’s banking sector remains resilient and secure.
In a statement shared via its official X (formerly Twitter) account, the CBN addressed a viral post alleging that Polaris Bank had failed to comply with recapitalisation requirements and was on the verge of being shut down. The regulator dismissed the report outright, categorizing it as false and misleading.
“The content is fake. Let the public be guided. The Nigerian Banking System is safe and secure,” the apex bank stated, reinforcing confidence in the financial system.
Viral Claims Debunked
The widely circulated message claimed that Polaris Bank was at risk of losing its operating licence due to an inability to meet newly revised capital thresholds set by the CBN. It further suggested that the Nigeria Deposit Insurance Corporation (NDIC) was preparing to step in to manage the liquidation process.
Additionally, the post alleged that prominent industrialist Razaq Okoya, founder of the Eleganza Group, had expressed interest in acquiring the bank as part of a potential turnaround plan, pending regulatory and shareholder approvals.
However, the CBN categorically rejected all aspects of the claim, clarifying that they do not reflect the current realities within the banking industry.
Strengthening the Banking Sector
The clarification comes shortly after the CBN announced the successful completion of a major recapitalisation exercise across the banking sector. According to the regulator, 33 financial institutions met the updated minimum capital requirements introduced to enhance systemic strength and global competitiveness.
The exercise, which spanned 24 months, reportedly mobilized a total of ₦4.65 trillion in fresh capital. This significant injection has improved capital adequacy ratios across the industry, placing Nigerian banks above internationally recognized Basel standards and boosting their capacity to withstand economic shocks.
While most institutions met the requirements, the CBN acknowledged that a small number remain under regulatory review or involved in ongoing legal processes. The bank assured that these cases are being handled through established supervisory and judicial mechanisms.
Polaris Bank’s Regulatory History
Polaris Bank has, in recent years, experienced a series of governance and regulatory interventions. In January 2024, the CBN dissolved the boards and executive management of Polaris Bank, alongside those of Union Bank and Keystone Bank, as part of broader efforts to reinforce oversight and ensure stability within the sector.
The bank also faced scrutiny in 2022 during its sale process, amid allegations that a higher acquisition bid had been overlooked in favor of a lower one. This controversy prompted intervention from the House of Representatives, which reportedly called for a suspension of the transaction.
More recently, legal developments involving Union Bank have added another layer of complexity to the sector’s regulatory environment. In March 2026, a Federal High Court in Lagos reversed the earlier removal of Union Bank’s board and management. Reacting to the ruling, the CBN stated that it would review the judgment while maintaining that the bank’s regulatory standing remains unchanged.
Reassurance to the Public
Despite these developments, the CBN continues to stress that Nigeria’s banking system is fundamentally sound. By debunking false reports and highlighting the progress made through recapitalisation, the regulator aims to sustain public trust and prevent unnecessary panic within the financial ecosystem.
The apex bank has urged the public to rely on verified information and avoid spreading unsubstantiated claims that could undermine confidence in the nation’s financial institutions.
