The Central Bank of Nigeria Clarifies Polaris Bank Liquidation Rumors
The Central Bank of Nigeria (CBN) has categorically dismissed rumors suggesting that Polaris Bank is facing liquidation. This announcement comes amid rising concerns from customers who were unsettled by the reports circulating online.
In a post shared on social media platform X, the CBN reassured the public that the nation’s banking system remains both stable and secure. This clarification followed a viral post that claimed Polaris Bank was on the verge of liquidation due to its alleged failure to satisfy the Bank’s recapitalization requirements and that it could potentially lose its operating license, with the Nigeria Deposit Insurance Corporation poised to take control.
Additionally, the viral rumors included unverified claims about Razaq Okoya, the founder of the Eleganza Group, purportedly bidding to acquire and revive the bank, pending the necessary approvals from regulatory bodies and shareholders.
In response to these assertions, the CBN flagged the claims as “fake content.” The bank stated that the rumor regarding Polaris Bank’s financial status and potential liquidation does not accurately represent the current health of the Nigerian banking sector.
“This content is fake. Let the public be guided. The Nigerian Banking System is Safe and Secure,” the CBN emphasized in its post.
On April 1, the CBN confirmed that 33 banks successfully met the revised minimum capital requirements mandated by its recapitalization program. This achievement marks a significant step in fortifying the country’s financial system.
During the 24-month exercise, a total of N4.65 trillion was raised, which has led to improved capital adequacy ratios across the banking sector, surpassing global Basel benchmarks and bolstering the resilience of Nigerian banks. Nonetheless, the CBN cautioned that “a limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.”