Lagos, Nigeria – Keystone Bank has officially confirmed that the Federal Government of Nigeria has assumed full ownership of the financial institution. This follows a ruling by the Lagos State High Court, Ikeja, which ordered the forfeiture of shares previously held by the bank’s former shareholders.
In a statement released on its official Instagram page on Tuesday evening, Keystone Bank described the development as a pivotal moment that will enhance its financial stability and support its recapitalization process.
Court Ruling and Government Takeover
The court’s decision effectively transferred ownership of the bank to the Federal Government after ruling in favor of the forfeiture of shares held by Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo, the bank’s former majority shareholders.
“At the court sitting today, February 11, 2025, the court ordered the forfeiture of the bank’s shares previously held by these shareholders in favor of the Federal Government of Nigeria,” the statement read.
This ruling follows heightened regulatory scrutiny and reforms in the Nigerian banking sector initiated by the Central Bank of Nigeria (CBN). Keystone Bank was among the three commercial banks whose boards and management were dissolved by the CBN on January 10, 2024, in a sweeping move aimed at strengthening the financial sector.
Keystone Bank’s Response and Future Prospects
Reacting to the ruling, Keystone Bank assured its customers and stakeholders that it remains financially sound and fully compliant with regulatory standards. The bank emphasized that the transition would not disrupt its operations but rather position it for stronger growth.
“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 statement added.
Keystone Bank also reaffirmed its commitment to ensuring seamless banking services, deposit security, and robust customer relations despite the ownership transition.
Background on Keystone Bank
Keystone Bank was originally established in 2011 as a bridge bank by the Asset Management Corporation of Nigeria (AMCON) following the liquidation of Bank PHB. It was later sold to Sigma Golf Nigeria Limited and Riverbank Investment Resources Limited in 2017 as part of the government’s divestment from nationalized banks.
The bank provides commercial, corporate, and SME banking services across Nigeria, with a network of branches, digital banking platforms, and innovative financial solutions.
The recent takeover by the Federal Government marks a new phase for the institution as it seeks recapitalization and long-term sustainability in an evolving financial landscape.
What’s Next?
The Federal Government is expected to oversee Keystone Bank’s stabilization process, likely through a future divestment or strategic partnership. Industry analysts suggest that the move aligns with broader efforts by Nigerian financial regulators to ensure the resilience of commercial banks amid economic challenges.
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