The Central Bank of Nigeria and Polaris Bank have refuted claims circulating on social media that the bank is undergoing a liquidation process after failing to meet the CBN’s recapitalisation requirements. The regulator and the bank debunked the claim in posts on X, classifying the liquidation narrative as “fake” and insisting that the Nigerian banking system remains safe and secure.
The false claim originated from an X user, @Femzydr1, who posted that Polaris Bank failed to comply with the CBN’s recapitalisation requirements and would be placed under the Nigeria Deposit Insurance Corporation for liquidation, with possible revocation of the bank’s licence. The post also alleged that the bank would be acquired by the founder of Eleganza Group of Companies, Razaq Okoya, to meet the CBN requirement.
Responding to the liquidation claim, the CBN wrote: “This content is fake. Let the public be guided. The Nigerian Banking System is Safe and Secure.” Polaris Bank also issued a fake news alert, stating: “Ignore this misinformation circulating online. Please note that the information being circulated is inaccurate. Our services remain fully operational and customers can continue to transact as usual. For verified updates, kindly rely on reliable media channels and our official communication channels, and avoid sharing unconfirmed information.”
The incident highlights the vulnerability of Nigeria’s financial system to misinformation, particularly following the conclusion of the CBN’s 24-month recapitalisation process on 31 March. That exercise required banks to expand their capital base, and while most institutions met the deadline, the process created an environment where false narratives about bank failures could gain traction. The rapid spread of such rumours poses risks to depositor confidence and financial stability, even when the claims lack factual basis.
From a regulatory perspective, the CBN’s swift response demonstrates improved crisis communication capabilities compared to previous episodes of bank distress rumours. However, the incident underscores the need for continued public education on verifying information through official channels. Polaris Bank, originally created as a bridge bank to absorb the assets of the defunct Skye Bank, has undergone significant restructuring and capital injections in recent years, including support from the CBN and strategic investors.
