Keystone Bank Becomes Government-Owned After Share Forfeiture

The Federal Government of Nigeria has officially taken ownership of Keystone Bank following a ruling by the Lagos State Special Offences Court on February 11, 2025. The court ordered the forfeiture of 6.3 billion units of ordinary shares to the government at a nominal rate of one naira per share.

Keystone Bank confirmed the development in a statement, declaring that the ruling effectively makes it a fully government-owned financial institution.

“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 favor of the Federal Government of Nigeria,” the bank stated.

Background: Why Did the FG Take Over Keystone Bank?

The legal battle stems from allegations of corporate governance breaches. On January 10, 2024, the Central Bank of Nigeria (CBN) dissolved Keystone Bank’s previous board and management, citing failures in governance and operational mismanagement.

Shortly after, the Economic and Financial Crimes Commission (EFCC) filed a lawsuit at the Lagos State High Court, Ikeja, challenging the acquisition of the bank by its former owners. The court’s latest decision now transfers full ownership to the government.

Keystone Bank’s Assurance to Customers

Despite the ongoing crisis, Keystone Bank has reassured customers that it remains operationally stable and financially secure.

“We assure our customers that the bank remains safe, healthy, strong, and resilient,” the statement read.