The Federal Government of Nigeria has fully acquired Keystone Bank following a Lagos court ruling. Former shareholders' shares were forfeited, ensuring the bank's stability and recapitalization. Keystone Bank reassured customers of its financial strength and commitment to growth, marking a major milestone in Nigeria’s evolving banking sector.
The Federal Government of Nigeria has officially taken full ownership of Keystone Bank following a court ruling. The Lagos State High Court ordered the forfeiture of shares previously held by the bank’s former shareholders, transferring them to the government.
Keystone Bank confirmed the development in a statement, emphasizing that the takeover will enhance its stability and facilitate a smooth recapitalization process. The court’s decision impacts shares held by Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo, with the ruling marking a significant milestone in the bank’s restructuring.
Following the Central Bank of Nigeria’s dissolution of Keystone Bank’s board and management in January 2024, the institution has been undergoing operational changes. The bank reassured customers that it remains financially strong, compliant with regulations, and committed to long-term growth.
“We are well-positioned for sustained growth, stronger partnerships, and enhanced profitability,” the statement read. Keystone Bank also affirmed its commitment to strengthening its balance sheet while delivering value to stakeholders.
The ruling underscores the government’s increasing intervention in the banking sector to ensure stability and investor confidence. Customers and partners have been assured of seamless banking operations despite the change in ownership.
Keystone Bank continues to focus on providing reliable financial services while adhering to regulatory requirements. The full acquisition by the government is expected to pave the way for further reforms and future expansion.
