By FG Takes Charge of Keystone Bank Following Court Judgment
Ghazali Ibrahim
The Federal Government of Nigeria has officially taken control of Keystone Bank following a recent court judgment delivered on February 11, 2025.
Keystone Bank Limited, licensed to resume operation on August 5, 2011 by the Central Bank of Nigeria (CBN) acquired all the assets, deposit liabilities and certain other liabilities of the erstwhile Bank PHB Plc from the Nigeria Deposit Insurance Corporation (NDIC) following the revocation by the CBN, of the Banking License of Bank PHB Plc.
The Lagos State Special Offences Court ruled in favor of the government, ordering the forfeiture of shares previously held by Sigma Golf Nigeria Limited and Alhaji Umaru H. Modibbo in the bank.
BlackBox Nigeria, in it’s earlier report, showed a series of events that began in January 2024 with the Central Bank of Nigeria (CBN) dissolving Keystone Bank’s Board and Management due to breaches in corporate governance, leading to the appointment of a new Board and Management.
The government’s court action followed an investigation into the legality of the bank’s previous ownership structure.
In a statement released by Keystone Bank, the financial institution described the ruling as a “significant milestone,” showing the beginning of a smoother recapitalization process.
The bank also reassured its customers that it remains operationally secure, emphasizing that it has maintained a healthy financial position with continued adherence to regulatory obligations.
While the court ruling has granted the Federal Government control over the bank, Keystone Bank assures its stakeholders that the transition will not affect its commitment to providing reliable services.
