Senior Advocate of Nigeria, Chukwuma-Machukwu Ume, has petitioned the Central Bank of Nigeria (CBN) to sanction Polaris Bank over its alleged refusal to disburse a ₦868 million loan facility meant for his client, Kanchez Nigeria Limited.
In the petition dated October 2, which was acknowledged by the apex bank the same day, Ume called on the CBN to investigate and take regulatory action, accusing Polaris Bank of breaching a bank guarantee agreement in a manner he described as both unethical and economically damaging.
> “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,” the petition reads.
The senior lawyer, who once served as Attorney-General of Imo State, stated that Kanchez Nigeria Limited secured the loan from Lecon Finance Company Limited in June 2025 to acquire a 160-ton Terex Demag AC160-2 Crane. According to him, Polaris Bank subsequently issued a ₦902.7 million bank guarantee in July 2025 to back the facility.
Despite Lecon Finance disbursing ₦868 million to Polaris as the guarantee bank, Ume alleged that the funds were never released to Kanchez Nigeria Limited—even after the company satisfied all preconditions, including providing a legal mortgage on a property in Port Harcourt, Rivers State.
> “Our client duly complied with all requirements, yet the bank has failed to honour its obligation,” Ume stated.
He further warned that the continued withholding of the funds—while interest charges of ₦16.2 million per month accrue—is not only a violation of the loan terms but also contravenes Section 13 of the Banks and Other Financial Institutions Act (BOFIA).
Ume noted that the company had written to Polaris Bank on September 15 seeking resolution, but alleged that the bank cancelled scheduled meetings five times, signalling what he described as a “clear refusal to engage in good faith.”
He lamented that the financial impasse has forced the company into a precarious situation, with mounting interest liabilities and stalled operations threatening jobs and business continuity.
> “Withholding ₦868 million meant for the purchase of essential equipment has paralysed a company that contributes significantly to local employment, commerce, and industrial activity,” he said.
The petition urges the CBN to compel Polaris Bank to release or refund the ₦868 million along with all accrued interest from August 4, 2025, and to assume responsibility for further interest payments calculated at ₦26.2 million monthly until the matter is resolved.
Ume concluded by calling on the apex bank to enforce its regulatory powers:
> “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.”
NAN
