In a significant legal development, the Lagos State Special Offences Court, sitting in Ikeja, has ordered the forfeiture of all shares previously held by the former owners of Keystone Bank Limited, effectively transferring full ownership of the bank to the Federal Government of Nigeria.

The ruling, delivered on Tuesday, February 11, 2025, marks the culmination of a legal battle over the acquisition of the bank by its previous shareholders—Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo. This follows a series of regulatory actions taken by the Central Bank of Nigeria (CBN) to address governance concerns within the financial institution.

Background of the Case

The ownership dispute dates back to January 10, 2024, when the CBN announced the dissolution of Keystone Bank’s Board and Management, citing breaches of corporate governance. In response, the Federal Government, through the Economic and Financial Crimes Commission (EFCC), initiated legal proceedings at the Lagos State High Court, Ikeja, to challenge the legitimacy of the bank’s acquisition by its former shareholders.

After months of legal deliberations, the court ruled in favor of the Federal Government, ordering the forfeiture of the bank’s shares held by the former owners. This decision now solidifies the government’s control over the bank, ensuring a new phase of stability and oversight.

Implications for Keystone Bank

With this judgment, Keystone Bank is now fully under the ownership of the Federal Government, providing a clear path for its recapitalization and long-term financial health. The bank has assured its customers, investors, and stakeholders that this transition will not affect its operations but will instead strengthen its stability and growth prospects.

Keystone Bank has reaffirmed its commitment to maintaining a strong financial position, fulfilling all regulatory obligations, and ensuring customer confidence in its services. The institution remains focused on enhancing its balance sheet, forging strategic partnerships, and driving profitability.

“We want to reassure our customers and stakeholders that Keystone Bank remains safe, stable, and resilient. This development further strengthens our financial standing and enables us to continue delivering value-driven banking solutions,” the bank stated in an official communication.

Next Steps and Future Outlook

As Keystone Bank embarks on this new phase under government ownership, industry analysts anticipate that the move will create opportunities for enhanced restructuring, potential capital injection, and long-term sustainability. The bank’s management has pledged to work closely with regulators to ensure smooth operations and uninterrupted service delivery.

Keystone Bank continues to prioritize customer satisfaction, innovation, and regulatory compliance, positioning itself for a new era of growth in Nigeria’s banking sector.

For more information, visit: www.keystonebankng.com.