The Nigerian government has taken full ownership of Keystone Bank after a court ruling required previous shareholders to relinquish their holdings. This follows a year of regulatory scrutiny and allegations against former CBN Governor Godwin Emefiele regarding improper acquisitions. The bank’s future focus includes recapitalization, stability, and growth despite unclear government management plans.
Nigeria has regained full ownership of Keystone Bank following a court decision mandating the former shareholders, Sigma Golf Nigeria Limited and Alhaji Umaru Modibbo, to surrender their stakes. This action follows a year of investigations into the bank’s control and governance issues. The Central Bank of Nigeria (CBN) had previously scrutinized Keystone Bank alongside Polaris and Union Bank for various regulatory violations.
The scrutiny led to the CBN dissolving the boards of these banks and appointing a special investigator, Jim Obazee, to examine their operations. His report revealed allegations against former CBN Governor Godwin Emefiele, suggesting he used intermediaries to acquire Union Bank for Titan Trust Bank Limited, as well as Keystone Bank and Polaris Bank without valid payment documentation. The acquisition of Keystone Bank involved a special-purpose vehicle led by Isa Funtua, funded by a ₦25 billion loan from Heritage Bank.
On February 11, 2025, the court ruled that the shares previously held by the shareholders be forfeited to the Federal Government of Nigeria, confirming that Keystone Bank is now entirely government-owned. The bank described this verdict as a significant milestone that facilitates a smooth recapitalization process, reassuring customers of its stability and resilience in the banking sector.
The government’s strategy for Keystone Bank’s future management remains unspecified. However, the bank aims to strengthen its balance sheet while targeting sustainable growth, enhancing partnerships, and increasing profitability, emphasizing its commitment to stakeholder value.
In summary, the Nigerian government has regained total ownership of Keystone Bank following a court ruling against its previous shareholders. This decision marks a crucial step in addressing the governance issues raised, allowing for potential recapitalization. Keystone Bank reassures stakeholders of its stability while outlining plans for future growth and profitability, despite the lack of clarity regarding the government’s management strategy.
Original Source: thecondia.com
