Keystone Bank clarifies court ruling on ex-shareholders’ status

Keystone Bank Limited has clarified media report of a judgement 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.

A statement by the management of the bank on Tuesday said the development follows a series of actions initiated by the Central Bank of Nigeria (CBN) in its bid to further strengthen the institution and the banking sector.

Keystone Bank noted that the development represents a major turning point, strengthening its stability and setting the stage for a smooth recapitalisation process.

According to the bank, “Recall that on January 10, 2024, the Central Bank of Nigeria (CBN) announced the dissolution of the previous Board and Management of the Bank for corporate governance breaches. The CBN followed this action with the appointment of a new Board and Management for the Bank.

“Subsequently the Federal Government through the the Economic and Financial Crimes Commission (EFCC),filed a court action at the Lagos State High Court, Ikeja, against the former owners challenging the acquisition of the bank.

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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 implication of this judgment is that Keystone Bank Limited is now fully owned by the Federal Government of Nigeria.

“This development marks a significant milestone in our journey, reinforcing our stability and paving the way for a seamless recapitalization process. With this clarity, we are well-positioned for sustained growth, stronger partnerships, and enhanced profitability.”

The bank added that it will continue to strengthen its balance sheet while delivering exceptional value to its teeming stakeholders.

“The bank maintains a strong financial position, consistently fulfilling all its obligations and adhering to all regulatory requirements.

“We assure our customers that the bank remains safe, healthy, strong, and resilient,” the statement noted.

Wasiu Alli

Wasiu Alli is a business, economics cum data journalist with strong expertise covering macro trends, capital markets, government policies, corporate earnings and comparative economics analysis. Alli turns raw data into trends that not only tells compelling stories but nudges investors to make valued and informed decisions. He’s an alumnus of Lagos State University and trained at Lagos Business School. He formerly heads the Companies and Markets desk at BusinessDay where he writes and supervises the production of well researched articles on earnings updates, corporate sectoral comparisons, market intelligence as well as interviews with C-suite executives.