The Federal Government of Nigeria has officially taken full control of Keystone Bank, following a ruling by the Lagos State High Court in Ikeja. The decision comes after the court ordered the forfeiture of shares previously held by the bank’s former shareholders, effectively transferring ownership to the government.
Court-Ordered Forfeiture
The Lagos State Special Offences Court ruled on February 11, 2025, that the shares owned by Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo be forfeited to the Federal Government. Keystone Bank confirmed this development in a statement, emphasizing that the takeover would enhance its stability and recapitalization efforts.
Keystone Bank’s Response
In an official statement, the bank described the takeover as a milestone that would reinforce its long-term growth, partnerships, and profitability.
“With this clarity, we are well-positioned for sustained growth, stronger partnerships, and enhanced profitability. Keystone Bank continues to strengthen its balance sheet while delivering exceptional value to its stakeholders,” the bank stated.
Keystone Bank also reassured its customers of its financial stability and regulatory compliance, emphasizing that it remains safe, strong, and resilient despite the change in ownership.
CBN’s Previous Intervention
Keystone Bank was one of the three banks whose boards and management were dissolved by the Central Bank of Nigeria (CBN) on January 10, 2024. The CBN’s intervention led to the appointment of new leadership as part of broader financial sector reforms.
The full acquisition by the Federal Government marks a significant step in the bank’s restructuring process, ensuring its long-term sustainability in Nigeria’s banking industry.
