The Nigerian government has regained full ownership of Keystone Bank after a court ordered the previous shareholders, Sigma Golf Nigeria Limited and Alhaji Umaru Modibbo, to relinquish their holdings. This move follows a year of scrutiny surrounding the bank’s ownership and alleged corporate governance infractions.
In January 2024, the Central Bank of Nigeria (CBN) investigated Keystone Bank, Polaris, and Union Bank for regulatory non-compliance. Subsequently, the CBN dissolved the banks’ boards of directors. A special investigator, Jim Obazee, was appointed to probe the banks’ affairs.
Obazee’s report alleged that former CBN Governor Godwin Emefiele used proxies to acquire Union Bank for Titan Trust Bank Limited. The report also claimed that Emefiele’s proxies acquired Keystone Bank and Polaris Bank without documented proof of payment. Specifically, the report stated that Keystone Bank was acquired by a special-purpose vehicle led by Isa Funtua and Emefiele, financed by a ₦25 billion loan from Heritage Bank.
“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,” Keystone Bank said in a statement. “This judgment implies that Keystone Bank Limited is now fully owned by the Federal Government of Nigeria.”
The bank’s statement described the ruling as a “significant milestone” and paves the way for a “seamless recapitalisation process.” Keystone Bank assured customers that it remains “safe, healthy, strong, and resilient” and will continue to deliver value to stakeholders.
The government’s plans for managing Keystone Bank in the future remain unclear. The bank stated that it will “strengthen its balance sheet” and pursue “sustained growth, stronger partnerships, and enhanced profitability.”
