- The Nigerian government has taken over Keystone Bank following a court order forfeiting N6.3 billion shares
- The bank revealed in a statement on social media that the takeover will position it for greater and more robust growth
- The takeover has led to massive fund withdrawals by customers, as Keystone affirmed that it is financially healthy
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Keystone Bank has disclosed that it is now fully owned by the federal government of Nigeria, saying that the takeover will boost its stability and facilitate a hitch-free recapitalisation process.
The bank revealed this in a statement on its website on Tuesday, February 11, 2025, following an order of the Lagos State High Court.
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Court orders forfeiture of shares to FG
The court directed the forfeiture of shares previously owned by the bank’s former shareholders, transferring ownership to the Nigerian government.
The bank said:
“Keystone Bank Limited wishes to clarify the media report on 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.”
“At the court sitting today, February 11, 2025, the court ordered the forfeiture of the bank’s shares previously held by these shareholders in favour of the Federal Government of Nigeria.”
Why FG is taking over Keystone Bank
Keystone Bank has gone through major leadership changes in the past year.
On January 10, 2024, the Central Bank of Nigeria (CBN) removed the bank’s previous board and management due to violations of corporate governance rules.
The CBN then appointed a new leadership team to take over.
Later, the federal government, through the Economic and Financial Crimes Commission (EFCC), took legal action against the former owners at the Lagos State High Court in Ikeja, questioning how they acquired the bank.
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The EFCC also charged Sigma Golf Nigeria Ltd and the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, with conspiracy and theft.
The EFCC informed the court that the defendants illegally took N20 billion from the Asset Management Corporation of Nigeria (AMCON) to buy shares in Keystone Bank.
According to the commission’s revised charges, the funds were moved through Sigma Golf Nigeria Limited, which was then used to acquire the bank.
While Kuru pleaded not guilty, Sigma Golf’s Chairman, Umaru Modibbo, admitted to the charges.
After months of court proceedings over the bank’s ownership, Justice Rahman Oshodi of the Lagos State Special Offences Court ruled that the bank’s shares—6.3 billion units—should be transferred to the federal government at a rate of one naira per share.
Keystone reaffirms its financial health
According to the bank’s statement, the development is crucial in reinforcing its stability and repositioning it for long-term growth.
Keystone Bank said that with the new clarity, it is now properly positioned for sustained growth, stronger collaborations, and enhanced profitability.
The bank said it continues to boost its balance sheet while delivering value to its stakeholders.
It also reassured its customers of sound financial health and regulatory compliance.
Customers rush to withdraw funds
The news of the bank’s takeover sent panic to its customers as many besieged the bank’s branches to withdraw their funds.
Customers were seen thronging one of the bank’s branches along Iju Road in Lagos.
According to them, the news of the takeover scared them, and they wanted to close or empty their accounts.
CBN assures of Keystone Bank's stability
The CBN has assured the public that Keystone Bank Limited is stable and continues to operate normally, despite a court ruling transferring its shares to the Federal Government.
In a statement, the bank’s acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, acknowledged public concerns but reassured depositors that there is no need to worry.
The CBN stated that it has been closely monitoring the bank to ensure it follows regulations, operates transparently, and protects customers’ deposits.
It also emphasized that keeping the banking sector stable and safeguarding depositors' funds are top priorities.
First Bank announces new name
Legit.ng earlier reported that FBN Holdings Plc, a leading financial company, has rebranded as First HoldCo Plc (FirstHoldCo), a move aimed at creating a uniform identity across all its subsidiaries.
The change was announced in a statement released on Tuesday, February 11, 2024.
The statement further noted that the rebranding shows FirstHoldCo’s commitment to innovation, customer focus, and operational excellence.
This article has been updated by head of business desk, Victor Enengedi, with additional informaton.
