A lawyer, Chukwuma-Machukwu Ume, has called on the Central Bank of Nigeria to sanction Polaris Bank for withholding a loan facility of N868 million belonging to his client, Kenchez Nigeria Limited.
Mr Ume, a former attorney general of Imo, made the appeal in a petition to the CBN governor, also copied to the directors of the Consumer Protection and Banking Supervision Departments.
In the petition, dated October 2, the lawyer alleged that the bank deliberately withheld his client’s funds in violation of a guarantee agreement, describing the act as a “gross breach of trust and sound banking practice”.
“This unlawful action amounts not only to breach of contract but to an attempted economic murder and financial strangulation of a loyal customer that has banked with Polaris for 22 years,” Mr Ume stated.
According to him, Kenchez Nigeria Limited had obtained a loan from Lecon Finance Company Limited to acquire a 160-ton Terex Demag AC160-2 Crane for its operations.
He explained that after the facility was approved by Lecon Finance in June 2025, Polaris issued a bank guarantee offer of N902.7 million in July 2025 to back the loan.
However, despite receiving N868 million from Lecon Finance as the guarantee bank, Mr Ume alleged that Polaris refused to release the funds to Kenchez Nigeria Limited even after the company fulfilled all preconditions, including providing a legal mortgage over a property in Port Harcourt, Rivers.
“Our client duly complied with all requirements, yet the bank has failed to honour its obligation,” said the petition.
The lawyer said Polaris’ continued withholding of the funds, while allowing interest of N16.2 million to accrue monthly, contravened Section 13 of the Banks and Other Financial Institutions Act (BOFIA). The lawyer revealed that the firm had written to Polaris on September 15, seeking a resolution of the matter.
He said that although Polaris scheduled a meeting, it cancelled it five times, showing what he described as a “clear refusal to engage in good faith”. The lawyer stated that the situation had forced his client to bear huge interest costs on idle capital, disrupting operations and threatening jobs.
“Withholding N868 million meant for the purchase of essential equipment has paralysed a company that contributes significantly to local employment, commerce and industrial activity,” he added.
Mr Ume urged the CBN to intervene by directing Polaris to immediately release or refund the N868 million, along with accrued interest since August 4. He also asked the apex bank to mandate the bank to assume liability for all subsequent monthly interest of N26, 206.860.66 until the facility is released or refunded, in line with relevant laws.
“The CBN should exercise its supervisory and disciplinary powers against Polaris Bank to safeguard the stability of the banking sector, uphold depositors’ confidence, and prevent a precedent that could embolden similar acts across the industry,” the lawyer stated.
(NAN)
