FG Takes Over Keystone Bank: Reasons And What It Means For Customers’ Money

FG Takes Over Keystone Bank: What Led to the Government’s Move and What It Means for Customers and Nigeria’s Banking Sector

The Federal Government (FG) has officially taken over Keystone Bank, raising concerns among Nigerians about the reason behind the move and the safety of their deposits.

This development follows months of legal battles over the bank’s ownership structure. The Lagos State Special Offences Court, on February 11, 2025, ordered the forfeiture of 6.3 billion ordinary shares of the bank to the FG at a nominal rate of one naira per share.

The takeover is part of ongoing efforts to address alleged financial misconduct linked to the bank’s acquisition.

The Legal Battle That Led to the Takeover

Keystone Bank has been under scrutiny since January 10, 2024, when the CBN dissolved its previous board and management over corporate governance breaches. The apex bank then appointed a new management team.

Subsequently, the Economic and Financial Crimes Commission (EFCC) filed a case against Sigma Golf Nigeria Ltd and the former AMCON Managing Director, Ahmed Kuru, accusing them of illegally acquiring the bank using public funds.

The EFCC alleged that:

• N20 billion from AMCON was funneled through Heritage Bank to Sigma Golf Nigeria Ltd for acquiring shares in Keystone Bank.
• N10 billion was illegally transferred to conceal its source.
• The bank was fraudulently acquired using public funds.

While Kuru pleaded not guilty, Sigma Golf’s Chairman, Umaru Modibbo, admitted guilt.

Keystone Bank’s Reaction

Following the court ruling, The Bank issued a statement, saying the takeover strengthens its stability and paves the way for recapitalization.

“This development marks a significant milestone in our journey, reinforcing our stability and paving the way for a seamless recapitalization process,”

the bank stated.

Is Customers’ Money Safe?

The Bank has assured depositors that their funds remain safe despite the ownership transition.

“We assure our customers that the bank remains safe, healthy, strong, and resilient,”

the statement added.

With FG now fully in control, the bank’s management is focusing on stabilizing operations, strengthening partnerships, and expanding its market presence.