Polaris Bank Under Fire as Former Staff Guarantor Faces ₦8.39m Debt Over Inherited Skye Bank Loan

Polaris Bank has come under scrutiny over the handling of a staff loan inherited from the defunct Skye Bank, leaving a former employee, Mr. Ude, in financial distress after acting as a guarantor for a loan granted nearly a decade ago.

According to an investigation by OnSpotNewsNG, Mr. Ude, who worked in the Information and Technology department at Skye Bank’s Broad Street Branch in 2015, served as one of two guarantors for a staff loan of ₦2,205,000 granted to his colleague, Mr. Jacobs Adeyinka Alexander. The loan was obtained in November 2015.

However, not long after securing the loan, Mr. Jacobs resigned from the bank. His resignation was accepted by Skye Bank’s Human Capital Management (HCM) without notifying the guarantors. After defaulting on payments, Mr. Jacobs reportedly sought a restructuring of the loan—again, without involving the guarantors.

It wasn’t until Jacobs failed to meet his repayment obligations post-restructuring that Mr. Ude was contacted by the bank.

Guarantor Under Pressure

Faced with threats of salary deductions and account debits, Mr. Ude said he was coerced into adopting and restructuring the loan. The bank allegedly imposed repayment terms on him, including a 24-month repayment period, zero interest, and deductions from his staff savings account (1020245278).

Loan recovery efforts were reportedly led by Mr. Tunji Bajowa and Mr. Fidelis of Polaris Bank, headquartered at the Churchgate Building, Victoria Island. Mr. Ude claimed that his questions regarding recovery efforts and loan terms were misinterpreted as threats, raising concerns about transparency in the process.

Disturbing Account Debits

In October 2018, a negative balance of ₦2.5 million appeared in Mr. Ude’s account, which the bank later said was linked to Mr. Jacobs’ unpaid loan. Despite being terminated from the bank in April 2019 under a “service no longer required” notice, Mr. Ude continued to make payments, reducing the balance to ₦1.2 million.

However, by October 2024, his account showed a staggering negative balance of ₦8.39 million, including a monthly capital interest of over ₦248,000—despite prior agreements that the restructured loan would be interest-free. He insists he never agreed to or was informed about such interest accumulation and questions why the amount continues to rise even after consistent payments.

Lack of Recovery from Original Debtor

Further investigations revealed that Mr. Jacobs had since moved to Unity Bank, yet Mr. Ude claims the bank made no visible efforts to recover the loan from him. Instead, he remains the sole target for recovery, with debt recovery firm Mida Africa Ltd now involved.

Despite repeated attempts to reach Mr. Jacobs and bank officials for a resolution, Mr. Ude says all efforts have fallen on deaf ears. His appeals for fairness and clarity have gone unanswered, leaving him burdened by a growing debt he did not incur.

Call for Action

Mr. Ude believes he has suffered unjustly for nearly a decade and is calling for Polaris Bank and Mr. Jacobs Adeyinka Alexander to address the matter transparently and equitably.

“This has destroyed my finances and career,” he said. “All I want is justice and a chance to move forward without this unnecessary burden.”

The situation has raised broader concerns over how inherited liabilities are managed by successor institutions, and how guarantors—often co-workers—can be left vulnerable when proper processes are not followed.

Polaris Bank is yet to respond officially to these allegations as of the time of filing this report.