Keystone Bank has issued a statement announcing that the Federal Government of Nigeria now owns all of its shares following a Tuesday ruling by the Lagos State Special Offences Court.
Justice Rahman Oshodi of the special court ordered the full forfeiture of Keystone Bank’s billions of shares to the government, specifically 6.3 billion shares at the rate of one naira per share.
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“At the sitting of the court today, February 11, 2025, the court ordered the forfeiture of the shares of the bank previously held by the shareholders in favour of the Federal Government of Nigeria,” the bank said in a statement on Tuesday. “The implication of this judgment is that Keystone Bank Limited is now fully owned by the Federal Government of Nigeria.”
Keystone Bank breached CBN regulations
The Central Bank of Nigeria (CBN) in January 2024 sanctioned Keystone Bank, Union Bank and Polaris Bank. CBN dissolved the banks’ board members and management over “regulatory non-compliance, corporate governance failure” and “involvement in activities that pose a threat to financial stability among others.”
The FG takeover was a key indicator of how Keystone bank failed to bounce back and why it had to surrender all its assets to the Nigerian government.
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“Subsequently, the Federal Government through the EFCC filed a court action at the Lagos State High Court, Ikeja, against the former owners challenging the acquisition of the bank,” the statement said.
The former shareholders of the bank are Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo.
Still, Keystone appeared to maintain an unperturbed stance as the financial institution assured “customers that the bank remains safe, healthy, strong, and resilient.”