BY OSABUOHIEN VIVIAN ROSE
The federal government has taken over Keystone Bank following a ruling by the Lagos State Special Offences Court.
The bank announced the takeover in a statement on Tuesday.
The trial judge, Justice Rahman Oshodi, ordered the ownership transfer and the forfeiture of 6.3 billion units of ordinary shares to the federal government at a nominal rate of one naira per share.
“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,” said the financial institution. “The implication of this judgment is that Keystone Bank Limited is now fully owned by the Federal Government of Nigeria.”
On January 10, 2024, the Central Bank of Nigeria announced the dissolution of the bank’s “previous board and management” for corporate governance breaches.
The apex bank followed this action by appointing a new board and management for the bank.”
“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.
Despite the crisis, Keystone said, “We assure our customers that the bank remains safe, healthy, strong, and resilient.”
Keystone Bank is one of the three banks whose boards and management were dissolved by the Central Bank of Nigeria on 10 January 2024, leading to the appointment of new leadership.
