CBN Assures the Public of Keystone Bank’s Stability Amid Court Ordered Forfeiture of Its Shares

The Central Bank of Nigeria (CBN) has issued a statement to reassure the public of the stability and operational continuity of Keystone Bank Limited following a recent court order that has seen the bank’s shares forfeited to the Federal Government.

Court Order and CBN’s Response

Arbiterz had earlier reported that Justice Ramon Oshodi at the Lagos State Special Offences Court in Ikeja made a significant ruling ordering the forfeiture of 6.3 billion units of ordinary shares in Keystone Bank, each valued at N1.00, to the Federal Government. The order came after Sigma Golf Nigeria Limited, represented by its Chairman Umaru Modibbo, admitted to charges of fraudulent conversion of N20 billion belonging to the Asset Management Corporation of Nigeria (AMCON).

On Friday, the CBN, through its acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, issued a statement regarding the court-ordered forfeiture of Keystone Bank’s controlling shares. The statement clarified that this order merely reaffirmed the CBN’s earlier decision in January 2024 to take over the management of Keystone Bank due to a leadership change.

Ensuring Stability and Compliance

The apex bank emphasized that the banking sector’s stability and the safety of depositors’ funds are paramount. Since taking over, the CBN has been closely monitoring Keystone Bank’s operations to ensure adherence to regulatory standards, maintain operational transparency, and protect depositor interests.

“The stability of the banking sector and the safety of depositors’ funds remain our top priorities,” the statement from CBN noted. It further assured that ongoing monitoring and necessary steps would be taken to safeguard the interests of depositors, staff, and all stakeholders.

Public and Customer Guidance

Customers experiencing concerns or needing further information are encouraged to reach out to Keystone Bank’s customer support or visit any of its branches for clarification. This move by the CBN is part of a broader strategy to strengthen governance and ensure the stability of Nigeria’s financial system.

Background on the Forfeiture

The forfeiture follows legal proceedings where Keystone Bank Limited announced its full ownership by the Federal Government of Nigeria. This was after the Lagos State Special Offences Court, sitting in Ikeja, dissolved Sigma Golf Nigeria Limited, the former shareholder of the bank, in a judgment delivered on Tuesday, February 11, 2025.

The court case was initiated by the Economic and Financial Crimes Commission (EFCC) against Sigma Golf Nigeria Limited and Ahmed Kuru, a former Managing Director of the Asset Management Corporation of Nigeria (AMCON), over an alleged N20 billion fraudulent diversion. Justice Rahman Oshodi convicted Sigma Golf on charges of conspiracy and stealing, accusing them of converting AMCON’s funds through Heritage Bank for share acquisition in Keystone Bank.

The CBN’s proactive stance in this matter underlines its commitment to maintaining trust in the Nigerian financial system, ensuring that despite legal and ownership changes, the operations of Keystone Bank remain unaffected for its customers and the broader public.

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