A lawyer, Chuckwuma-Machukwu Ume, SAN, has prayed the Central Bank of Nigeria to sanction Polaris Bank for allegedly withholding a loan facility of N868 million belonging to a customer, Kenchez Nigeria Limited.
Ume, a former Attorney-General of Imo, made the application in a petition written to the CBN governor and copied to its two directors in Consumer Protection Department and Banking Supervision Department, on the company’s behalf.
The petition, dated Oct. 2, was received by the apex bank same date and a certified true copy made available to newsmen on Thursday in Abuja.
Ume accused the commercial bank of deliberately withholding the company’s money in clear breach of guarantee terms.
The lawyer chronicled the alleged numerous unethical conducts of Polaris Bank, which he said amounted to violations of banking laws and regulatory safeguards put in place for the stability of the banking sector.
He alleged that the withholding of N868m by the bank, which was duly disbursed into its custody by Lecon Finance Company Limited on the strength of Polaris’ own guarantee, transcended mere breach of contracts, but amounted to an attempted economic murder and financial strangulation of Kenchez Nigeria Limited, that has maintained 22 years of an unbroken banking loyalty with the bank.
Ume explained that his client, Kenchez Nigeria Limited, had applied and obtained the loan from Lecon Finance Company Limited to acquire a 160-ton Terex Demag AC160-2 Crane for its operational activities.
“On March 6, 2025, Kenchez Nigeria Limited applied to Lecon Finance Company Limited for a direct finance lease facility of N902, 720, 000.00 to acquire a 160-ton Terez Demag AC160-2 Crane for its operational activities.
“By a Revised Indicative Offer dated May 19, 2025 and subsequent letter of offer dated June 30, 2025, Lecon Finance approved the facility subject to some conditions including the provision of a bank guarantee from a commercial bank acceptable to Lecon Finance, to secure the principal, accruing interest, and end-of-lease payments.
“In addition, on July 8, 2025, Polaris Bank limited issued an offer letter approving a bank guarantee facility in the sum of N902, 720, 000.00 to Kenchez Nigeria Limited.
“However, long after the loan facility of N868 million was paid to Polaris Bank, which acted as the guarantee bank for the loan, it has refused to release same to its owner, Kenchez Nigeria Limited, even after satisfying all the preconditions put in place by the bank, including perfecting a legal mortgage over its property in Port Harcourt.”
According to him, it is important to state that our client dully complied with all preconditions, including execution of a third-party legal mortgage, thereby placing valuable landed property in Rivers State at the bank’s disposal.
Ume said despite this, the bank refused to release the funds.
“We therefore bring to your good office that Polaris Bank’s actions amount to grave violations of both statutory and judicial recognised obligations.
“By unlawfully withholding N868m dully credited into our client’s account while permitting interest of N16.2 million to accrue monthly, Polaris Bank is in breach of its core duty of trust and sound practice under Section 13 of BOFIA.
“We wish to bring to your attention that our office formally wrote to Polaris Bank on September 15, 2025 seeking urgent resolution of this matter.
“The bank scheduled a meeting in response but subsequently cancelled it on no fewer that five occasions, demonstrating a clear and deliberate refusal to engage in good faith, despite being in possession of the funds owed,” he said.
The senior lawyer said this inaction by the bank had forced his client to continue paying substantial interest on idle capital, causing severe disruption of its operational activities and economic growth.
“Crucially, withholding N868m funds expressly disbursed for the procurement of a critical crane has paralysed Kenchez Nigeria Limited, a Nigerian enterprise that has contributed significantly to local employment, commerce and industrial activity, thereby indeed effectively strangling the lifeblood of this legitimate Nigerian business.”
Ume, therefore, urged the CBN to direct Polaris Bank “to immediately release or refund the N868m, wrongly withheld together with all interest already accrued and wasted since August 4, 2025.
“To mandate Polaris Bank to assume liability for all subsequent monthly interest of N26, 206.860.66 until the facility is released or refunded, in line with clause 12 of the guarantee and its banker-customer duty.
“That the CBN should exercise its supervisory and disciplinary powers against Polaris Bank to safeguard the stability of the banking sector, uphold depositor confidence and prevent a precedent that could emboldened similar acts across the industry.”
