Federal Government Secures Full Ownership of Keystone Bank Following Court Ruling

 

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The Federal Government of Nigeria has officially taken full ownership of Keystone Bank, following a court ruling that ordered the forfeiture of shares previously held by its former shareholders. This development was confirmed in a statement released by the bank on its official X (formerly Twitter) handle on Tuesday evening. The statement clarified the outcome of a judgment delivered by the Lagos State Special Offenses Court, sitting in Ikeja, on February 11, 2025, regarding the status of the bank’s former shareholders, Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo.

The statement recalled that on January 10, 2024, the Central Bank of Nigeria (CBN) dissolved the previous Board and Management of Keystone Bank due to corporate governance breaches. Following this action, the CBN appointed a new Board and Management to oversee the bank’s operations. Subsequently, the Federal Government, through the Economic and Financial Crimes Commission (EFCC), filed a court action against the former shareholders, challenging their acquisition of the bank.

The court’s ruling on February 11, 2025, mandated the forfeiture of the shares held by the former shareholders in favor of the Federal Government. This judgment effectively transfers full ownership of Keystone Bank to the Federal Government of Nigeria. The bank’s statement emphasized that this decision solidifies the government’s control over the financial institution.

This move marks a significant shift in the ownership structure of Keystone Bank and underscores the government’s commitment to addressing corporate governance issues within the banking sector. It also reflects ongoing efforts to stabilize and strengthen Nigeria’s financial institutions. The Federal Government’s takeover is expected to bring about reforms aimed at ensuring transparency, accountability, and improved service delivery in the bank’s operations.

As the news spreads, stakeholders and customers of Keystone Bank will be closely monitoring the government’s next steps and how this change in ownership will impact the bank’s operations and the broader banking industry in Nigeria.

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