

By Correspondent in Abuja.
A Senior Advocate of Nigeria (SAN), Chukwuma-Machukwu Ume, has threatened legal action against Polaris Bank over its alleged refusal to release a loan facility of ₦868 million belonging to Kenchez Nigeria Limited.
In a letter addressed to the bank’s Managing Director, Ume, a former Attorney-General of Imo State, also demanded a refund of ₦16,206,860.66, which he said represented the first month’s interest already paid by his client to Lecon Finance Company Limited on the withheld facility.
The letter, dated September 15 and acknowledged by the bank on September 17, expressed concern over Polaris Bank of financial misconduct and warned that the matter would be reported to the Central Bank of Nigeria (CBN), the National Deposit Insurance Corporation (NDIC), and other relevant regulators if not resolved.
According to Ume, Kenchez Nigeria Limited, a customer of Polaris Bank for 22 years, secured the loan from Lecon Finance Company Limited to acquire a 160-ton Terex Demag AC160-2 Crane for its operations.
He alleged that although Lecon Finance had disbursed the loan through Polaris Bank as the guarantor, the bank failed to release the funds to the company despite the fulfillment of all preconditions, including the perfection of a legal mortgage over its property in Port Harcourt.
“This is after several demand letters by the company requesting utilisation of the guaranteed funds or a refund of same to Lecon Finance Company Limited, which the bank has ignored,” Ume stated.
The lawyer further accused Polaris Bank of breaching Section 13 of the Banks and Other Financial Institutions Act (BOFIA) 2020, which mandates banks to operate in line with sound banking practices. He also cited violations of the CBN Consumer Protection Regulations 2019, the Money Laundering Act, and the Economic and Financial Crimes Commission (EFCC) Act, stressing that the bank had no lawful basis to freeze or withhold access to his client’s funds.
Edited by Dada Ahmed.