Court Orders Forfeiture of Keystone Bank Shares Held by Sigma Golf, Modibbo to Federal Government

……decision is expected to bolster the bank’s stability and accelerate its recapitalization process.

The Federal Government of Nigeria has officially taken full ownership of Keystone Bank following a ruling by the Lagos State High Court, Ikeja, which ordered the forfeiture of shares previously held by former shareholders. The landmark decision is expected to bolster the bank’s stability and accelerate its recapitalization process.

Keystone Bank confirmed the development in a statement on Tuesday, emphasizing that the transition marks a significant milestone in its journey toward long-term growth and enhanced financial strength. The court ruling effectively transfers the bank’s ownership from Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo to the Federal Government, providing much-needed clarity on its governance structure.

“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 stakeholders,” the bank stated.

The bank further reassured its customers and partners of its financial health and regulatory compliance, affirming that it remains safe, strong, and resilient despite the ownership transition.

This takeover follows the Central Bank of Nigeria’s (CBN) decision on January 10, 2024, to dissolve the boards and management of three banks, including Keystone Bank, as part of a broader effort to stabilize the financial sector. With full government ownership now confirmed, Keystone Bank is expected to move forward with its recapitalization strategy, reinforcing investor confidence and ensuring continued service delivery.

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