According to A Daily Post news, In a dramatic move that has sent ripples through Nigeria’s financial sector, the Federal Government has officially taken over the ownership of Keystone Bank, following a court ruling that led to the forfeiture of shares belonging to its largest shareholders. This takeover marks a significant shift in the bank’s control and is aimed at restoring integrity and transparency in the Nigerian banking industry.
The development follows a ruling by a Lagos State High Court, which ordered the forfeiture of approximately ₦6.3 billion worth of shares held by Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo. These entities were previously the largest shareholders in Keystone Bank. The court found that the shares were acquired through questionable means, involving the misuse of public funds and violations of financial regulations.
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The Economic and Financial Crimes Commission (EFCC) had accused the former owners of using illicit funds channeled through the Asset Management Corporation of Nigeria (AMCON) and other financial institutions to acquire the bank. Following months of investigation, legal proceedings, and a plea bargain, the Federal Government moved to reclaim full ownership of the bank.
With this development, the Central Bank of Nigeria (CBN) and AMCON have stepped in to oversee the bank’s operations, ensuring continued service to customers and protection of depositor funds. Keystone Bank, in a statement released shortly after the ruling, assured customers that the takeover would not disrupt its operations. The bank emphasized that all funds remain safe and that its services would continue without interruption.
Financial experts have described the government’s move as a bold step toward enforcing corporate accountability and addressing long-standing concerns around transparency in bank acquisitions. “This is a clear message to financial operators that regulatory bodies are watching and ready to act when necessary,” one analyst commented.
Meanwhile, customers and stakeholders have been urged to remain calm, as the government and new bank leadership work on stabilizing the institution and preparing it for recapitalization. Industry observers expect the move to boost investor confidence and encourage stronger regulatory compliance across the banking sector.
The Federal Government’s takeover of Keystone Bank is seen as a landmark decision, reinforcing its commitment to financial reform and accountability, while also ensuring that the interests of ordinary Nigerians are protected in the nation’s banking system.
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