The Central Bank of Nigeria has moved to calm public fears after viral social media claims suggested that Polaris Bank was facing liquidation for failing to meet recapitalisation requirements. In a post on X, the apex bank dismissed the rumours as “fake content,” assuring Nigerians that the country’s banking system remains safe and secure.
The false reports alleged that Polaris Bank would lose its operating licence, with the Nigeria Deposit Insurance Corporation set to take over its operations. They also claimed that Razaq Okoya, founder of the Eleganza Group, had made a bid to acquire and revive the bank pending regulatory and shareholder approval.
The CBN clarified that these claims do not reflect the current state of the Nigerian banking sector. The bank pointed to a recent milestone: on April 1, it confirmed that 33 banks had successfully met revised minimum capital requirements under its recapitalisation programme. A total of ₦4.65 trillion was raised over 24 months, pushing capital adequacy ratios above global Basel benchmarks and enhancing sector resilience. The regulator noted that only a limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established frameworks.
The clarification follows heightened scrutiny of the sector after the CBN dissolved the boards and management of Polaris Bank, Union Bank, and Keystone Bank in January 2024 as part of efforts to reinforce oversight. Polaris Bank has previously been at the centre of controversy, including claims in 2022 that a higher bid was submitted during its sale process than the one accepted. At the time, the House of Representatives directed the CBN to suspend the sale.
More recently, a Federal High Court in Lagos reportedly reversed the removal of Union Bank’s board and management, although the CBN maintains that the bank’s regulatory status remains unchanged and is reviewing the judgment.
The CBN’s swift rebuttal aims to prevent market panic and reinforce confidence in Nigeria’s financial system amid a backdrop of regulatory reforms and legal challenges affecting several institutions.
