Federal Government Takes Full Ownership of Keystone Bank Following Court Order

Keystone Bank has confirmed that it is now fully owned by the Federal Government of Nigeria after a ruling by the Lagos State High Court, Ikeja, ordered the forfeiture of shares previously held by its former shareholders.

In a statement posted on its official Instagram page on Tuesday evening, the bank clarified the implications of the court’s decision and assured customers of its stability amid the transition.

The ruling, delivered on Tuesday, February 11, 2025, ordered that the shares previously owned by Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo be forfeited to the Federal Government. This move effectively transferred full ownership of the financial institution to the government.

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Keystone Bank stated that the takeover would enhance its stability and facilitate a smooth recapitalisation process, aligning with the broader objectives of strengthening Nigeria’s banking sector.

“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,” the bank’s statement read.

“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.”

This development marks a significant shift in the bank’s ownership structure, as it had previously been privately owned. While the full details surrounding the forfeiture remain unclear, the Federal Government’s takeover is expected to bring a new direction to the bank’s operations.

Keystone Bank has reassured its customers that it remains committed to providing quality banking services despite the ownership change.

More details are expected to emerge in the coming days regarding the government’s plans for the bank, including its leadership structure and future operations.