FG Takes Over Keystone Bank After Court Order

The Federal Government has officially taken full ownership of Keystone Bank following a court ruling ordering the forfeiture of the bank’s shares previously held by its former shareholders, Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo.

Keystone Bank confirmed this development in a statement posted on its X handle on Tuesday evening, stating, “Keystone Bank Limited wishes to clarify media reports of a judgment by the Lagos State Special Offences Court, sitting in Ikeja, Lagos, on Tuesday, February 11, 2025, regarding the status of the former shareholders of the bank: Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo.”

The bank recalled that on January 10, 2024, the Central Bank of Nigeria (CBN) had dissolved its previous board and management due to corporate governance breaches and subsequently appointed a new leadership team.

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“Subsequently, the Federal Government, through the EFCC, filed a court action at the Lagos State High Court, Ikeja, against the former owners challenging the acquisition of the bank. At the sitting of the court today, February 11, 2025, the court ordered the forfeiture of the shares of the Bank previously held by the shareholders in favour of the Federal Government of Nigeria. The implication of this judgment is that Keystone Bank Limited is now fully owned by the Federal Government of Nigeria,” the statement read.

Describing the development as a “significant milestone in our journey,” the bank emphasized that it was a step towards “paving the way for a seamless recapitalization process.”

“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 teeming stakeholders,” the bank stated.

“The bank maintains a strong financial position, consistently fulfilling all its obligations and adhering to all regulatory requirements. We assure our customers that the bank remains safe, healthy, strong, and resilient.”