The Federal Government (FG) has officially taken over Keystone Bank, raising concerns about the reasons behind the move and the safety of customers’ deposits. However, the government has reassured the public that banking operations will continue as usual.
Why Did the FG Take Over Keystone Bank?
The takeover follows a legal dispute over the bank’s ownership structure and alleged financial misconduct. Key developments include:
- On January 10, 2024, the Central Bank of Nigeria (CBN) dissolved the bank’s previous board and management over corporate governance breaches and appointed a new leadership team.
- The Economic and Financial Crimes Commission (EFCC) later filed a case against Sigma Golf Nigeria Ltd and Ahmed Kuru, the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), over the bank’s acquisition.
- The EFCC accused the defendants of illegally using N20 billion in AMCON funds to acquire Keystone Bank and laundering N10 billion to conceal its source.
- On February 11, 2025, Justice Rahman Oshodi of the Lagos State Special Offences Court ordered the forfeiture of 6.3 billion ordinary shares of the bank to the Federal Government, finalizing the transfer.
What Happens to Customers’ Money?
Keystone Bank has assured customers that the transition will not affect their deposits, accounts, or banking services. The bank described the move as a “significant milestone”, stating that it provides clarity and strengthens stability while paving the way for recapitalization and future growth.
With the Federal Government now fully in control, Keystone Bank is expected to undergo restructuring to enhance profitability and operational efficiency. Customers can continue using their accounts without interruption.
