Chuckwuma-Machukwu Ume (SAN), a former Attorney-General of Imo State, has issued a legal warning to Polaris Bank over its alleged refusal to disburse a loan amounting to N868 million to Kenchez Nigeria Limited.
In a formal letter dated September 15, 2025, addressed to the bank’s managing director, Ume threatened to escalate the matter to the Central Bank of Nigeria (CBN) and other regulatory bodies such as the National Deposit Insurance Corporation (NDIC), citing suspected financial impropriety by the bank.
The senior counsel also demanded reimbursement of N16,206,860.66, which represents the initial month’s interest paid by his client to Lecon Finance Company Limited on the withheld loan.
According to the letter, Kenchez Nigeria Limited, a loyal customer of Polaris Bank for over two decades, secured a loan from Lecon Finance Company Limited to purchase a 160-tonne Terex Demag AC160-2 Crane essential for its business operations.
Despite the loan being disbursed to Polaris Bank, which served as the guarantor, the bank has allegedly declined to release the funds to Kenchez Nigeria Limited, even after the company fulfilled all stipulated conditions, including registering a legal mortgage on its property located in Port Harcourt, Rivers State.
Repeated requests from Kenchez Nigeria Limited for the release or refund of the guaranteed funds to Lecon Finance Company Limited have reportedly been ignored by Polaris Bank.
Ume emphasized that by withholding funds designated for a specific purpose, Polaris Bank is in violation of Section 13 of the Banks and Other Financial Institutions Act (BOFIA) 2020, which requires banks to operate under sound banking principles. Furthermore, this conduct breaches the Central Bank of Nigeria’s Consumer Protection Regulations of 2019, which mandate fairness, transparency, and good faith in customer relations.
He further asserted that the bank’s actions contravene Section 7 of the Money Laundering (Prohibition) Act and Section 34 of the Economic and Financial Crimes Commission (EFCC) Act, as Polaris Bank cannot lawfully freeze or restrict access to the client’s account without due legal process.