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By Correspondent in Abuja.
A Senior Advocate of Nigeria (SAN), Chief Chukwuma-Machukwu Ume, has called on the Central Bank of Nigeria (CBN) to sanction Polaris Bank for allegedly withholding a loan facility of ₦868 million belonging to his client, Kenchez Nigeria Limited.
Ume, a former Attorney-General of Imo State, made the appeal in a petition to the CBN Governor, also copied to the Directors of the Consumer Protection and Banking Supervision Departments. The petition, dated October 2, was acknowledged by the apex bank the same day.
The lawyer accused Polaris Bank of deliberately withholding his client’s funds in violation of a bank 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,” 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 Bank issued a bank guarantee offer of ₦902.7 million in July 2025 to back the loan.
However, despite receiving ₦868 million from Lecon Finance as the guarantee bank, Ume alleged that Polaris Bank has 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 State.
“Our client duly complied with all requirements, yet the bank has failed to honour its obligation,” Ume wrote in the petition.
He said the bank’s continued withholding of the funds, while allowing interest of ₦16.2 million to accrue monthly, contravened Section 13 of the Banks and Other Financial Institutions Act (BOFIA).
Ume revealed that his firm had written to Polaris Bank on September 15, 2025, seeking resolution of the matter. Although the bank scheduled a meeting, it allegedly cancelled it five times, showing what he described as a “clear refusal to engage in good faith.”
The senior lawyer lamented that the situation had forced his client to bear huge interest costs on idle capital, disrupting operations and threatening jobs.
“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 added.
Ume urged the CBN to intervene by:Directing Polaris Bank to immediately release or refund the ₦868 million, along with accrued interest since August 4, 2025.
Holding the bank liable for a further ₦26.2 million monthly oninterest until the funds are released or refunded and Invoking its disciplinary powers to sanction Polaris Bank and safeguard depositor confidence in the financial system.
Edited by Dada Ahmed.
