Keystone Bank has officially confirmed that it is now fully owned by the Federal Government of Nigeria, following a court-ordered forfeiture of shares previously held by its former shareholders.
The bank disclosed this in a statement on its Instagram page on Tuesday evening, revealing that the Lagos State High Court, Ikeja, had transferred ownership of the bank’s shares to the Federal Government.
Court Ruling and Share Forfeiture
According to Keystone Bank, the judgment affected shares previously held by Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo, its former stakeholders.
“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.
The development follows the Central Bank of Nigeria’s (CBN) decision on January 10, 2024, to dissolve the boards and management of Keystone Bank, along with two other banks, as part of regulatory actions to strengthen the financial sector.
Implications for Keystone Bank
Keystone Bank described the takeover as a significant milestone that will enhance its stability, support its recapitalization process, and drive long-term 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 bank stated.
Reassuring its customers, the bank affirmed that it remains financially strong, safe, and compliant with regulatory standards.
The takeover marks a major shift in the Nigerian banking landscape, with expectations that the Federal Government’s involvement will help restore confidence and ensure seamless operations within the bank.