Keystone Bank says FG’s takeover to enhance recapitalisation drive

The Federal Government’s takeover of Keystone Bank Limited will enhance the capitalisation process according to the bank.

The bank announced this in a statement on its Instagram page Tuesday evening after a ruling by the Lagos State High Court in Ikeja.

The court ruled that shares formerly owned by the bank’s previous shareholders be forfeited, thereby transferring ownership to the Federal Government.

In a statement, Keystone Bank Limited addressed media reports concerning a judgment by the Lagos State Special Offences Court in Ikeja on Tuesday, February 11, 2025, regarding the bank’s former shareholders, Sigma Golf Nigeria Limited and Umaru H. Modibbo.

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“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 statement reads.

An official statement from the bank confirmed that Justice Ramon Oshodi of the Lagos State Special Offences Court in Ikeja on Tuesday ordered the forfeiture of 6.3 billion units of ordinary shares of Keystone Bank Limited, valued at N1.00 each, to the Federal Government.

The company was arraigned alongside Ahmed Kuru, former managing director of AMCON, after entering a plea bargain agreement with the Economic and Financial Crimes Commission (EFCC).

The EFCC filed a six-count amended charge claiming that the AMCON funds were diverted through Heritage Bank for the benefit of Sigma Golf Nigeria Limited to facilitate the acquisition of Keystone Bank but Kuru, the first defendant in the case, pleaded not guilty to the charges.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.