The Federal Government of Nigeria has officially taken full ownership of Keystone Bank, marking a significant transition in the bank’s corporate structure. This development follows a court ruling by the Lagos State Special Offences Court sitting in Ikeja on February 11, 2025.
According to a statement released by Keystone Bank on its official X handle, the ruling ordered the forfeiture of shares previously held by its former shareholders, Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo, to the Federal Government.
The legal proceedings leading to this decision were initiated by the Economic and Financial Crimes Commission (EFCC), which filed a court case challenging the acquisition of the bank by the former shareholders. The judgment aligns with an earlier move by the Central Bank of Nigeria (CBN), which, on January 10, 2024, dissolved the previous board and management of Keystone Bank due to corporate governance breaches and appointed a new leadership team to oversee its affairs.
In its official statement, Keystone Bank described the development as a “significant milestone” and emphasized that it sets the stage for a seamless recapitalization process. “With this clarity, we are well-positioned for sustained growth, stronger partnerships, and enhanced profitability,” the bank said. It reassured stakeholders that it remains financially strong, compliant with regulatory requirements, and committed to delivering exceptional value.
The Federal Government’s full takeover is expected to bring about structural changes aimed at improving governance, financial stability, and customer service at Keystone Bank. Analysts anticipate further directives from the government and the CBN on the bank’s long-term operational framework.
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