The Federal Government has taken full control of Keystone Bank Limited, after its former shareholder, Sigma Golf Nigeria Limited, lost the legal tussle to control the bank.
A Lagos State Special Offences Court on February 11, 2025, convicted Sigma Golf in a case initiated by the Economic and Financial Crimes Commission (EFCC) on an alleged N20 billion fraudulent diversion through Heritage Bank for the acquisition of Keystone Bank shares.
The court ordered the forfeiture of Sigma Golf’s shares in Keystone Bank to the federal government., with the court ruling that Sigma Golf’s interest in over 6.25 billion units of Keystone Bank’s shares is surrendered.
The judgement confers the sole ownership of the bank of the Federal Government, which is now saddled with repositioning and strengthening the bank.
Keystone Bank, in a statement released on February 11, 2025, confirmed the development and highlighted its importance in reinforcing the bank’s position in the Nigerian banking sector.
The statement stated, “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 Federal Government’s takeover follows a series of actions by the Central Bank of Nigeria (CBN), including the dissolution of the previous board and management on January 10, 2024, due to corporate governance issues.
The CBN appointed new leadership, which was subsequently followed by the EFCC’s legal action against the former shareholders.
“We maintain a strong financial position, consistently fulfilling all our obligations and adhering to all regulatory requirements. We assure our customers that the bank remains safe, healthy, strong, and resilient,” the statement added.
