Abuja: A Lawyer, Chukwuma-Machukwu Ume, SAN, has called on the Central Bank of Nigeria (CBN) to sanction Polaris Bank for allegedly withholding a loan facility of N868 million belonging to his client, Kenchez Nigeria Limited. 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.
According to News Agency of Nigeria, the petition, dated Oct. 2, was acknowledged by the apex bank the same day and a copy made available to newsmen on Thursday in Abuja. The lawyer alleged that Polaris Bank deliberately withheld his client’s funds in violation of a bank guarantee agreement, describing the act as a ‘gross breach of trust and sound banking practice.’
Ume stated that the action amounted to a breach of contract and an attempted economic harm to a loyal customer that has banked with Polaris for 22 years. He explained that Kenchez Nigeria Limited had obtained a loan from Lecon Finance Company L
imited to acquire a 160-ton Terex Demag AC160-2 Crane for its operations.
He further explained that after the facility was approved by Lecon Finance in June 2025, Polaris Bank 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, Ume alleged that the bank 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.
Ume wrote in the petition that their client complied with all requirements, yet the bank failed to honour its obligation. He mentioned that the bank’s 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 Bank on Sept. 15, seeking resolution of the matter. He said although the bank schedul
ed a meeting, it allegedly cancelled it five times, indicating a refusal to engage in good faith.
Ume expressed concern that the situation had forced his client to bear significant interest costs on idle capital, disrupting operations and threatening jobs. He added that withholding N868 million meant for purchasing essential equipment has paralyzed a company that contributes significantly to local employment, commerce, and industrial activity.
Ume urged the CBN to intervene by directing Polaris Bank to immediately release or refund the N868 million, along with accrued interest since Aug. 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.
He concluded that 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 s
imilar acts across the industry.